KUALA LUMPUR (May 21): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (May 22) are: Apex Healthcare Bhd, Axiata Group Bhd, British American Tobacco (M) Bhd (BAT), Capitaland Malaysia Mall Trust (CMMT), Eastern & Oriental Bhd, Genting Malaysia Bhd (GenM), Genting Bhd, HeiTech Padu Bhd, Inari Amertron Bhd, Kossan Rubber Industries Bhd, KUB Malaysia Bhd, Malayan Banking Bhd (Maybank), MBM Resources Bhd, Media Prima Bhd, Sime Darby Bhd, Sime Darby Property Bhd, Sunway Construction Bhd (Suncon), Petron Malaysia Refining & Marketing Bhd, Poly Glass Fibre (M) Bhd, Tadmax Resources Bhd, TSH Resources Bhd and UEM Edgenta Bhd.
Apex Healthcare Bhd’s first quarter ended March 31(1QFY20) net profit rose 26.06% to RM14.37 million from RM11.4 million a year earlier, as COVID-19 boosted the sale of its pharmaceutical products in Malaysia and Singapore. Quarterly revenue rose 8.46% to RM193.31 million from RM178.23 million.
Axiata Group Bhd’s 1QFY20 net profit slumped 74% to RM188.11 million from RM725.17 million, on the back of forex losses, higher operating and finance costs and taxes. Revenue grew 1.46% to RM6.04 billion from RM5.95 billion previously. As a result, it is pulling its headline key performance indicator guidelines for FY20 because of business uncertainties arising from the COVID-19 pandemic. These targets were 3.5% to 4.5% revenue growth for FY20, as well as earnings before interest, taxes, depreciation and amortisation (Ebitda) growth of 4% to 5.5%.
British American Tobacco (M) Bhd’s 1QFY20 net profit declined 42.7% to RM50.77 million, from RM86.6 million last year, as the legal cigarette market continues to contract. This is the lowest since 2QFY16 and is the fifth consecutive quarterly earnings decline. The group declared a first interim dividend of 17 sen, the lowest interim dividend since the group was formed following the merger between Rothmans of Pall Mall (Malaysia) Bhd and the Malaysian Tobacco Company Bhd back in 1999. Quarterly revenue fell 22.5% to RM481.15 million from RM620.96 million, as sales volume declined 21%.
Capitaland Malaysia Mall Trust saw its 1QFY20 net property income fall by a quarter to RM39.36 million from RM52.75 million a year ago, on the back of lower rental income at its mall amid the MCO. It announced a distribution per unit of 0.98 sen from 1.71 sen posted last year. Total distributable income came in 42.2% lower at RM20.1 million from RM34.96 million previously.
Genting Malaysia Bhd (GenM) posted a net loss of RM417.95 million in 1QFY20 from a net profit of RM268.28 million a year ago, as all of its casinos have been shut down. It also had to recognise a loss of RM100.1 million from its stake in Empire Resorts Inc, which was acquired from controlling shareholder Tan Sri Lim Kok Thay. Quarterly revenue dropped 28.5% to RM1.95 billion from RM2.73 billion last year.
Parent company Genting Bhd reported a net loss of RM133.32 million from a net profit of RM561.64 million ayer ago. The loss was attributed to lower earnings before interest, taxes, depreciation and amortisation (EBITDA), an impairment loss of RM482.5 million and RM108 million in a share of loss from joint ventures and associates. Quarterly revenue fell 26.26% to RM4.11 billion, from RM5.57 billion last year.
HeiTech Padu Bhd secured an RM126.02 million maintenance and technical support services contract from the Road Transport Department (JPJ). The contract which ends on Sept 30, 2022, involves the maintenance and technical support services for hardware and software mainframe systems.
Inari Amertron Bhd’s 3QFY20 net profit was down 8.19% at RM35.06 million from RM38.19 million last year, on lower revenue, higher depreciation and higher tax incurred. These are its weakest results since 3QFY16. Inari declared a dividend of one sen, payable on July 10. Quarterly revenue fell 5.36% to RM242.57 million from RM256.32 million last year. Meanwhile, 9MFY20 net profit shrank 21.61% to RM120.28 million from RM153.43 million a year prior. Cumulative revenue fell 6.52% to RM824.61 million from RM882.19 million.
Kossan Rubber Industries Bhd saw its 1QFY20 net profit rise 10.35% to a record high of RM64.8 million from RM58.72 million last year, on greater rubber glove sales. Quarterly revenue also reached a new high of RM611.47 million, from RM561.47 million last year. The group is proposing a second interim dividend of three sen per share, payable on June 19.
KUB Malaysia Bhd returned to the black in 1QFY20, posting a net profit of RM4.93 million from a net loss of RM69,000 last year, on the back of higher revenue and its agro division returning to profitability. Quarterly revenue was up 7% at RM109.38 million from RM102.26 million previously, on the back of revenue expansion in all segments save for its ICT division.
Malayan Banking Bhd saw its 1QFY20 net profit rise 13.03% to RM2.04 billion from RM1.81 billion a year ago, while its revenue increased RM13.22 billion from RM12.97 billion. The higher earnings were on the back of robust performances in its corporate banking and global markets, investment banking and asset management segments.
MBM Resources Bhd’s 1QFY20 net profit slumped 45.2% to RM27.23 million from RM49.66 million previously, as it saw lower car sales and auto part manufacturing volume. Quarterly revenue declined to RM374.04 million from RM519.07 million, on account of lower sales during the MCO.
Media Prima Bhd posted its fifth straight quarterly loss on the back of lower advertising expenditure (adex) with its 1QFY20 net loss narrowing to RM29.54 million, from RM40.41 million a year prior. The smaller loss was attributed to savings booked from cost management measures. Quarterly revenue inched down 0.28% to RM238.44 million from RM239.1 million, as the group saw lower revenue from its television network, publishing, Out-of-Home and radio network.
Sime Darby Bhd’s 3QFY20 net profit fell 48.19% to RM115 million, from RM222 million a year earlier. Revenue dipped 1.6% to RM8.43 billion from RM8.57 billion. The group said the lower earnings were due to slowdowns in its industrial and motor divisions, particularly in China. Cumulative net profit for the first nine months of FY20 declined 15.84% to RM643 million from RM764 million previously. Revenue fell to RM374.04 million from RM519.07 million.
During a media briefing, CEO Datuk Jeffri Salim Davidson said the group is willing to part with its 10.88% stake in Eastern & Oriental Bhd (E&O) for the right price and offer. He also said that there could be further disposals of non-core assets on the horizon.
Sime Darby Property Bhd’s 1QFY20 net profit plunged 95% to RM14.15 million from RM265.08 million previously, following a significant drop in revenue contributions from its property development and investment segments. Quarterly revenue came in 17.11% lower at RM476.74 million, from RM575.13 million in 1QFY19. The lower income from its property development and investment operations came on the heels of the expiration of the Home Ownership Campaign last year and the MCO.
Sunway Construction Bhd’s 1QFY20 net profit fell 47% to RM16.35 million from RM31.02 million last year, following the imposition of the MCO in March. Quarterly revenue dropped 17% to RM365.83 million from RM440.04 million a year prior. Profit margins declined as a result of lower turnover while maintaining its fixed overhead.
Petron Malaysia Refining & Marketing Bhd posted a net loss of RM83.86 million in 1QFY20 from a net profit of RM57.52 million last year, as Covid-19 resulted in lower oil prices that caused inventory holding losses, weaker refining margins and lower sales volume as a result of the MCO. Revenue fell to RM2.24 billion from RM2.75 billion last year.
Poly Glass Fibre (M) Bhd is venturing into manufacturing melt-blown non-woven fabric for surgical face masks. It has placed an order with a reputable melt-blown technology developer to supply a production line to deliver the fabric. The production line will be installed at its existing facility in Penang is expected to commence production by the end of June.
Tadmax Resources Bhd is acquiring a 70% stake in Bendera Juara Sdn Bhd (BJSB) from Maxim Holdings Sdn Bhd for RM233,334. BJSB is in the process of acquiring a 5.73-acre plot of land in Alam Damai, Cheras for RM64.84 million or RM260 per sq ft from Syarikat Perumahan Pegawai Kerajaan Sdn Bhd.
TSH Resources Bhd saw its 1QFY20 net profit fall 83.86% to RM2.25 million from RM13.54 million previously, due to forex losses and higher taxes. This is the weakest quarter since 4QFY16, when it entered into the red due to forex losses. This is despite a 23.99% rise in revenue to RM257.39 million from RM207.59 million on the back of higher crude palm oil prices.
UEM Edgenta Bhd’s 1QFY20 net profit sank 65.84% to RM11.16 million from RM32.66 million a year earlier, amid margin squeeze due to rising operating costs from its key segments. This is the group’s weakest quarterly net profit since 2QFY16. Revenue fell 2.71% to RM501.87 million, from RM515.88 million, supported largely by steady top line at its core earnings contributors, the healthcare support business under its asset management segment, and the infrastructure services business under its infrastructure solutions segment.
https://www.theedgemarkets.com/article/apex-healthcare-axiata-bat-cmmt-eo-genm-genting-heitech-padu-inari-kossan-kub-maybank-mbm
