KUALA LUMPUR (Feb 25): Based on corporate announcements and news flow today, stocks in focus on Tuesday (Feb 26) may include: Gamuda Bhd, Malaysian Bulk Carriers Bhd, Apex Equity Holdings Bhd, Tan Chong Motor Holdings Bhd, Karex Bhd, K Seng Seng Corp Bhd, Media Chinese International Ltd, Econpile Holdings Bhd, Boustead Plantations Bhd, Sunway Construction Group Bhd, Lay Hong Bhd, Unisem (M) Bhd, APM Automotive Holdings Bhd and UEM Edgenta Bhd.
Gamuda Bhd confirmed today that it is in talks with the Government in relation to the proposed takeover of four highway concessions, and said the company will ensure that any takeover of its highway concessions is in line with "market valuation norms and practices".
"As the board of directors of Gamuda has a fiduciary duty to deliver fair and reasonable value to all its shareholders, Gamuda has to ensure that the proposed transaction will be based on market valuation norms and practices," it said in a filing.
Malaysian Bulk Carriers Bhd (Maybulk) posted a record high quarterly net profit of RM406.44 million for the fourth quarter ended Dec 31, 2018 — boosted by gain on disposal of associate and reduced loss from associate — versus a net loss of RM73.17 million in the year-ago quarter.
Quarterly revenue fell 3.5% to RM69.04 million from RM71.52 million.
For the full financial year, Maybulk’s FY18 net profit stood at RM263.84 million — its highest level since FY08 — versus a net loss of RM134.95 million a year ago, while revenue contracted 12.3% to RM238.97 million from RM272.58 million.
Maybulk said while sentiments in the freight market have turned bearish amid the slowing global economy, the dry bulk fleet is expected to grow at a lower 3% this year, which should then provide better resilience to overall freight market fundamentals.
Apex Equity Holdings Bhd’s shareholder, Concrete Parade Sdn Bhd, is suing the stock-broking company concerning its proposed merger deal with Mercury Securities Sdn Bhd, and corporate exercises, including a share buy-back exercise in the past.
Apex Equity told Bursa Malaysia that it has been served an originating summons (OS) today, along with 15 others, including Apex’s board of directors, Apex’s wholly-owned subsidiary JF Apex Securities Bhd, Mercury Securities Sdn Bhd and seven individuals, by Concrete Parade, which has a 4.68% stake in the company.
In response to the OS, Apex said its board is currently reviewing the relevant cause papers and shall engage solicitors to defend the litigation.
Tan Chong Motor Holdings Bhd has reported a net profit of RM51.56 million for the fourth quarter ended Dec 31, 2018, compared to a net loss of RM7.19 million a year ago, as quarterly revenue rose 8.45% to RM1.17 billion from RM1.08 billion.
The group declared a final dividend of two sen per share, amounting to RM13.1 million.
Tan Chong’s full-year net profit for FY18 stood at RM101.03 million — its first full profitable year after two loss-making years — versus a net loss of RM88.6 million last year. Revenue came in at RM4.86 billion, 11.91% higher than RM4.34 billion previously.
The group expects the domestic automotive industry to be subdued in FY19, as new vehicles' sales remain soft due to cautious consumer sentiment on big ticket items, as well as continued strict financing approval guidelines.
Karex Bhd, the world's largest condom maker, saw its net profit halve to RM1.4 million in its second quarter ended Dec 31, 2018, from RM3.17 million a year ago, due to a less favourable sales mix.
This was as the 2.7% rise in revenue — to RM113.55 million from RM110.52 million on higher sales from its sexual wellness segment due to more tender orders being shipped out — was more than offset by a stronger rise in cost of goods sold.
For the first half of FY19, Karex’s net profit fell 54.3% to RM3.37 million from RM7.38 million a year ago, while revenue retreated 5.7% to RM205.71 million from RM218.11 million.
K Seng Seng Corp Bhd (KSSC), whose share price surged nearly 25% to a peak of 58 sen today, says it is unaware of any reason that may account for the sharp rise in its share price.
KSSC, in a reply to Bursa Securities’ query on the unusual market activity, said its directors are not aware of any rumour or report concerning the group’s business and affairs, or any other possible explanation, for such trading activity.
It also said there are no corporate developments relating to the group’s business and affairs that has not been previously announced, including those in the stage of negotiation or discussion.
KSSC's shares have been heavily traded in the past two trading days.
Media Chinese International Ltd saw its third quarter net profit fall by 38% to RM7.05 million from RM11.38 million a year ago, on the back of lower revenue.
Quarterly revenue fell 6.21% to RM262.91 million from RM280.33 million previously, as contribution from both the group's publishing and printing segment and travel-related services segment dropped.
For the nine months ended Dec 31, 2018, Media Chinese’s net profit declined 8.63% to RM32.03 million, from RM35.05 million previously, despite a 4.45% increase in revenue to RM956.53 million, from RM915.8 million previously, helped by its travel-related services which offset the lower contribution from the publishing and printing segment across all fronts.
Moving forward, the group expects softening newsprint price together with cost-containment efforts to benefit its printing arm, while it continues to grow its digital business segment and travel services segment.
Econpile Holdings Bhd recorded its first quarter in the red since the group was listed in 2014, with a net loss of RM34.45 million in the three months ended Dec 31, 2018, versus a net profit of RM22.73 million a year ago.
The weaker performance was due to a 30.7% jump in cost of sales to RM168.89 million from RM129.26 million, while revenue retreated 8.6% to RM148.18 million from RM162.17 million.
For the first-half period ended Dec 31, 2018, Econpile recorded a net loss of RM19.4 million versus a net profit of RM43.92 million in the corresponding half-year period in FY18, despite revenue rising 8.3% to RM348.48 million from RM331.07 million.
Its performance was affected by some RM18.5 million losses caused by the delay and idling costs from two infrastructure projects caused by overall project rationalisation of costs and changes in design and/or scope of work by main contractors, and some RM15.4 million costs over-run in a property development project.
Econpile remains optimistic on new job wins both in private-initiated property development projects as well as ongoing infrastructure projects, and expects the construction sector's outlook to remain positive for FY19.
Boustead Plantations Bhd has wrapped up its financial year ended Dec 31, 2018 in the red, after reporting a net loss in the fourth quarter of the year — its third consecutive losing quarter.
It recorded a net loss of RM12.9 million in the fourth quarter of the year, compared to a net profit of RM22.17 million in the year-ago quarter while quarterly revenue fell 28.2% to RM156.56 million from RM218.16 million. It attributed the losses to a decline in palm product prices and higher interest expense attributed to the acquisition of Pertama estates in Sabah.
Consequently, Boustead Plantations registered a net loss of RM51.78 million for its full year (FY18), compared to a net profit of RM620.17 million in FY17, while revenue contracted 23.2% to RM584.01 million from RM760.1 million.
The group said the coming year will be challenging, but could be supported by several acquisitions including the proposed acquisition of more than 4,000 ha of mature fields and a palm oil mill in Sandakan, Sabah.
Sunway Construction Group Bhd’s (SunCon)’s net profit for the fourth quarter ended Dec 31, 2018, helped by wider profit margin, grew 26.6% to RM36.57 from RM28.89 million last year; despite a 16.3% decline in quarterly revenue to RM626.02 million against RM748.17 million a year ago.
The construction group declared a second interim single tier dividend of 3.5 sen per share.
For the full year, its net profit grew 9.37% to RM144.69 million versus RM132.3 million last year. Its revenue increased 8.7% to RM2.26 billion from RM2.08 billion in FY17.
SunCon expects to perform satisfactorily in FY19, barring any unforeseen circumstances. It is targeting RM1.5 billion new orders for FY19, higher than the RM1.6 billion new deals secured for its order book in FY18.
Lay Hong Bhd's third quarter net profit declined 63% to RM3.75 million from RM10.11 million a year ago, due to lower quantity of processed chicken products sold and the closure of one of the retail outlets in Papar, Sabah.
Revenue for the quarter ended Dec 31, 2018 stood at RM203.32 million, down 10.9% from RM228.19 million previously.
For the cumulative nine-month period, Lay Hong remains in the red with a net loss of RM4.93 million, compared to a net profit of RM26.70 million in the previous corresponding period. Nine-month revenue fell 4.3% to RM589.61 million from RM615.78 million previously.
For the next few months, Lay Hong expects average egg price to remain at the current level.
Unisem (M) Bhd's net profit fell 26.6% to RM23.49 million in the fourth quarter ended Dec 31, 2018, from RM32.02 million a year ago, on lower sales volume. Quarterly revenue also slipped 7.2% to RM331.82 million from RM357.41 million previously.
The semiconductor assembly and test services provider has proposed a final dividend of 3 sen per share.
For full FY18, Unisem's net profit came in 39.9% lower at RM95.83 million compared with RM159.46 million in FY17, while revenue contracted 7.8% to RM1.35 billion from RM1.47 billion in FY17.
The group attributed the decrease in revenue and net profit for FY18 to the depreciation of the US dollar/ringgit exchange rates compared with the prevailing rates a year ago.
On prospects, Unisem expects its performance to “remain satisfactory for the next financial year”.
APM Automotive Holdings Bhd said its net profit increased 32.3% to RM17.34 million in the fourth quarter ended Dec 31, 2018, from RM13.1 million a year ago.
This came as quarterly revenue grew 16.8% to RM382.59 million, from RM327.54 million previously, contributed mainly by the group’s interior and plastics division on continued strong demand from certain original equipment manufacturer (OEM) models.
APM has recommended a final dividend of seven sen per share.
For FY18 as a whole, the group’s net profit stood at RM38.44 million, a marginal 1.7% decrease from RM39.1 million in FY17, thanks to higher demand from OEM customers, coupled with favourable product mix that generated higher margin recorded for its interior and plastics division. Meanwhile, full-year revenue came in at RM1.33 billion, up 12.3% from RM1.19 billion in the year before.
Going forward, the group remains cautious but optimistic that its initiatives and strategies, together with its plans for product innovation and regional expansion, will yield positive results.
UEM Edgenta Bhd’s core net profit in the fourth quarter ended Dec 31, 2018 expanded 27.8% to RM69.09 million from RM54.07 million previously on lower finance costs and taxes.
When including gain of disposal of a subsidiary amounting to RM274.91 million recorded in the year-ago quarter, UEM Edgenta’s net profit fell by more than two-thirds to RM67.73 million from RM324.81 million previously.
Quarterly revenue fell 3.7% to RM647.35 million from RM672.31 million last year, as lower contribution from two segments — consultancy, and infra services — offset the rise in contribution from healthcare services, property and facility solutions, and property development.
The group has declared a second interim dividend of eight sen per share, payable on May 9.
For the full financial year (FY18), UEM Edgenta’s net profit fell 64.55% to RM148.24 million from RM418.19 million the year before, while annual revenue grew marginally by 2.92% to RM2.18 billion from RM2.12 billion previously as lower contribution from the consultancy segment was offset by higher revenue across the board.
The company remains optimistic of its prospects in the infrastructure and healthcare sectors, in which it predominantly operates.
http://www.theedgemarkets.com/article/gamuda-maybulk-apex-equity-tan-chong-karex-k-seng-seng-media-chinese-econpile-boustead
