Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 28 May 2013 19:54
KUALA LUMPUR (May 28): Based on corporate announcements released today, stocks that may stir interest include KNM, UEM Land, Matrix, Lion Corp, Kinsteel, Perwaja, Dutch Lady, IJM and IJM Plant, Harrisons and SAB.
KNM GROUP BHD [] announced that it has secured a new contract order worth RM307 million, bringing its total order book (excluding Peterborough and Orizon) to RM2.4 billion todate.
UEM LAND HOLDINGS BHD [] said it posted a net profit of RM211.08 million for the first quarter of 2013, up 289.7% from RM54.17 million in the first quarter of 2012, on higher revenue.
Earnings per share rose to 4.88 sen from 1.25 sen.
Revenue for the property company with strong Iskandar Malaysia presence rose more than one fold to RM711.49 million from RM303.72 million.
On outlook, the company said it is “optimistic of the group’s prospects in 2013” given the progress of its on-going projects and its planned launches for the year.
Matrix Concepts Holdings Bhd, which made its debut on the main market of Bursa Malaysia today, expects more than 30% growth in net profit for its financial year ending Dec 31, 2013, driven by on-going projects and unbilled sales of RM445.1 million as at end-March.
"Last year we registered a net profit of RM103 million and we are confident of doing better this year," its group managing director Datuk Lee Tian Hock told reporters after the company's listing ceremony here.
He said the group is currently developing Bandar Sri Sendayan, its flagship integrated township in Seremban, with a RM5 billion gross development value (GDV), slated for completion in 2019.
On future prospects, Lee said the group is eyeing the Klang Valley for its expansion plan.
At market close, Matrix Concepts rose 35 sen to RM2.55 with 21.626 million shares changing hands.
LION CORPORATION BHD [] narrowed its net loss for its third quarter from a year earlier.
In a filing with Bursa Malaysia, the company reported a net loss of RM68.66 million for its quarter ended March 31, 2013 (3QFY13). In the previous corresponding quarter, its net loss stood at RM76.13 million.
Lion Corp managed to reduce the net loss as its 3QFY13 sales grew by 4.37% to RM727.42 million from RM696.95 million a year earlier.
Lion Corp said the flat steel products in both domestic and overseas markets were sluggish in the first half of this financial year, which affected its results.
Lion Corp said its board of directors is “cautiously optimistic” that its steel division will improve in the coming quarters due to the implementation of the new steel policy and the government’s mega infrastructure projects, which will spur a higher steel consumption.
KINSTEEL BHD [] posted a net loss of RM8.42 million for its first quarter to end-March 2013 on reduced revenue of RM410.05 million, compared to a profit of RM10.27 million on RM506.07 million a year ago.
The company said its first quarter results were affected by the slowdown in the overall steel market and higher raw material prices.
The company said the global steel industry’s outlook remains stagnant due to further rises in raw prices for steel and continuing sluggish growth in advanced economies, but in the domestic market, the demand for steel will be supported by various government mega projects to be rolled out under the Economic Transformation Programme (ETP).
Perwaja Holdings Bhd, the associate company of Kinsteel, also suffered net loss of RM18.52 million for its first quarter to March 2013, compared to a net profit of RM16.22 million in previous corresponding period.
Revenue for the steel company fell to RM301.42 million, from RM406.12 million.
DUTCH LADY MILK INDUSTRIES BHD [] said it posted a net profit of RM29.02 million for the first quarter of 2013, up from RM27.47 million in the first quarter of 2012. Earnings per share rose to 45.35 sen from 42.90 sen.
But revenue fell to RM206.27 million from RM214.05 million.
Dutch Lady said higher profit was due to improved sales mix and better cost management.
“Despite the recent trend of increasing dairy raw material prices, the board of directors of the company is cautiously optimistic on its 2013 performance given the strength of its Dutch Lady brand,” the company said.
IJM CORPORATION BHD [] said it posted a net profit of RM64.43 million for its fourth quarter to end-March 2013, down 23.3% from RM84.04 million in previous corresponding quarter.
Its earnings per share for the quarter fell to 4.66 sen from 6.08 sen.
But revenue rose 3.3% to RM1.25 billion, from RM1.21 billion.
The diversified group announced a second interim dividend of nine sen.
For the full year, net profit totalled RM420.89 million against RM409.08 million in previous year.
On outlook, IJM said it expects its CONSTRUCTION [] division to perform satisfactorily and industry division to grow on increased construction and infrastructure activities.
IJM PLANTATION []S BHD [], a unit of IJM group, reported that its net profit for the fourth quarter to March 2013 tripled to RM22.20 million from a year earlier, on marginally higher revenue of RM135.12 million.
It has declared a dividend of 7 sen per share.
Harrisons Holdings (Malaysia) Bhd’s bottom line for its first quarter was 19% lower from a year earlier as the marketing and distribution services provider took a beating from higher selling and distribution costs.
Harrisons’ net profit for its quarter ended March 31, 2013 (1QFY13) was RM6.36 million against RM7.86 million in the previous corresponding period.
Going forward, Harrisons Holdings said Malaysia’s consumer business is expected to grow in tandem with the country’s economy this year.
However, Harrisons Holdings expects its margins to reduce due to rising operation costs.
Southern Acid Bhd (SAB) saw a turnaround in its fourth quarter results, registering a net profit of RM6.47 million compared to a loss of RM576,000 in the fourth quarter of the previous financial year.
For the full year, net profit for the year to March 2013 increased sharply to RM34.46 million from RM19.92 million.