Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 22 May 2013 20:18
KUALA LUMPUR (May 22): Based on corporate results released today, stocks that may lure investor interest tomorrow include Kulim, Axiata, KLK, Batu Kawan, Hua Yang, KPJ, PetChem, Boustead Holdings and Dayang.
Kulim (Malaysia) Bhd’s net profit for its first quarter was a jump of 403% from a year earlier. This surge in profit was due to the disposal of its subsidiaries QSR and KFC to Massive Equity Sdn Bhd.
The company reported net earnings of RM345.53 million for its first quarter ended March 31, 2013. In the previous corresponding quarter, its net profit stood at RM68.71 million.
Kulim’s revenue came to RM258.86 million, which was 23.92% higher than 1QFY12’s RM208.89 million. This was due to an increase in palm oil fruit production, despite lower prices.
Axiata Bhd recorded a net profit of RM614.6 million for its first quarter ended March 31, which was 8.7% higher than the RM565.6 million it posted in the previous corresponding quarter.
Revenue was RM4.5 billion, compared with RM4.2 billion it recorded in similar quarter in 2012.
Axiata said the group saw a solid performance in a seasonally slow quarter amidst heightened competitive pressures and strengthening ringgit.
Axiata Chairman, Tan Sri Datuk Azman Mokhtar, described the results as “resilient”.
KUALA LUMPUR KEPONG BHD [] (KLK) posted a net profit of RM209.7 million for the second quarter ended March 2013, a 2.4% year-on- year drop compared to RM214.9 million a year ago.
Its revenue for the second quarter also decreased to RM2.24 billion, down from RM2.62 billion.
It declared an interim dividend of 15 sen per share.
Reviewing its results, KLK said the fall in profit was due to mainly to decline in palm oil prices, which caused its PLANTATION []s sector to record a 36.3% fall in profit to RM191.6 million.
KLK said due to the current low palm products prices, the group's plantations profit will be much lower than that of the previous year although its oleochemical and property divisions will continue to do well.
Overall, the group foresees a lower profit for the current financial year.
BATU KAWAN BHD [], KLK’s parent company, said its second quarter net profit had fallen 3% year-on-year to RM108.9 million, with flat revenue of RM83.8 million.
Batu Kawan owns 47% of shares in KLK, a leading plantations company in the region. KLK is Batu Kawan’s biggest investment.
The company also declared an interim dividend of 15 sen.
On outlook, Batu Kawan said: “As profit of our plantation associate, KLK, will be affected by the global economic slowdown and prevailing weaker commodity prices, the group’s profit for the financial year ending 30 September 2013 is expected to be lower than that of the previous financial year.”
HUA YANG BHD [] enjoyed a 31% rise in net profit for its final quarter from steady CONSTRUCTION [] progress recognition of all ongoing projects.
The company also declared a dividend of 8.25 sen per share, bringing the full-year dividend to 13.25 sen.
Hua Yang said its net profit for its fourth quarter ended March 31, 2013 (1QFY13) was RM17.01 million against the previous year’s RM13.01 million.
Revenue in the quarter under review came to RM102.4 million. This was 21% higher than the previous corresponding quarter’s RM84.28 million.
“Based on the group's pipeline of ongoing and upcoming projects, the board is positive of posting improved results for FY14,” Hua Yang commented on its prospects.
KPJ HEALTHCARE BHD [] posted a net profit of RM25.1 million for the first financial quarter to March 2013, a fall of 25% year-on-year.
Revenue for the quarter rose to RM545.1 million from RM525.6 million a year ago.
Explaining on the drop in profit, KPJ said: “A total of RM10 million was included in the preceding quarter as a result of gain on disposal of shares in Al-‘Aqar Healthcare REIT and gain on revaluation of investment PROPERTIES [].”
For the current year outlook, KPJ said the expansion of existing hospitals will have a positive impact to the group results for 2013, but this will be moderated by the new greenfield hospitals whereby each hospital will have an average gestation period of 3-5 years.
Petronas Chemicals Group Bhd (Petchem) has allocated RM3 billion for capital expenditure this year, of which two-thirds would be utilised for the development of the Sabah Ammonia Urea (SAMUR) project, Bernama reported.
PCG Chairman Datuk Wan Zulkiflee Wan Ariffin said the world-scale greenfield project was a very important milestone for the company as it would strengthen its urea market position in South East Asia.
The company is currently the fifth largest producer of urea in the South East Asian region with an annual production capacity of 1.4 million metric tonnes.
"We target to complete the SAMUR project by August 2015. And, after some commissioning and testing process, the plant would begin commercial operations two months thereafter.”
BOUSTEAD HOLDINGS BHD []’s net profit for the first quarter ended March 31, 2013 plunged 69.08% to RM99.9 million from RM144. 6 million, due mainly to lower palm oil prices that impacted its plantation division.
The company said its revenue for the quarter rose to RM2.53 billion from RM2.36 billion.
Earnings per share fell to 9.66 sen from 13.98 sen a year earlier, while net asset per share was RM4.53.
On its prospects, Boustead said the outlook for CPO will be challenging.
DAYANG ENTERPRISE HOLDINGS BHD []’s net profit rose more than seven folds to RM58.4 million in the first quarter ended March 31, 2013, from RM6.88 million a year earlier.
The oil and gas support- services provider said revenue climbed 17% to RM87.92 million from RM74.84 million.
Dayang said net profit had risen on extraordinary gains of RM32.8 million. This follows the "reclassification of fair value reserve" in associate Perdana Petroleum Bhd.
Looking ahead, Dayang said while it is optimistic on its prospects for the current financial year, it is mindful of the impact from a still-volatile global economic climate.