Business & Markets 2013
Written by Ho Wah Foon of theedegemalaysia.com
Monday, 20 May 2013 20:00
KUALA LUMPUR (May 20): Based on news flow and corporate results today, the stocks that may attract interest tomorrow (May 21) include MAHB, TSH, TH Plant, Affin, Daya, KPS, Fajarbaru, Alcom, Instacom and Sino Hua-Ann.
MALAYSIA AIRPORT HOLDINGS BHD [] (MAHB) expects a 10% increase in the number of passengers at the Kuala Lumpur International Airport (KLIA) by year-end from 39.9 million passengers last year, Bernama reported.
Its senior general manager Datuk Azmi Murad said the first quarter of 2013 saw the number of passengers grow 12% year-on-year to 14.2 million.
"We have done a lot of initiatives to attract airlines to come to KLIA and our incentive is to boost Malaysia's economic growth as well," he told reporters at a media briefing today.
TSH RESOURCES BHD [] reported a net profit of RM19.9 million for the first quarter ended March 2013, up 32% year on year, due to increase in palm oil production.
For the current quarter, the group registered a higher revenue of RM280.1 million, compared to RM227.4 million for the corresponding first quarter.
The higher profit was attributed mainly to strong performance in the palm & bio-integration segment and a higher share of profit in jointly controlled entities, the PLANTATION [] company told Bursa Malaysia.
FFB production rose 43% to 129,055 metric tonnes in 1Q, 2013, while CPO production increased by 25% to 77,480 metric tonnes.
On prospects, TSH said the group can expect to achieve improved profit in the coming quarter.
TH PLANTATIONS BHD [], which already operates six oil palm mills in Peninsular Malaysia, plans to set up its first palm oil refinery in Sarawak, said executive officer Datuk Zainal Azwar Zainal Aminuddin.
CONSTRUCTION [] of the refinery will begin at year-end and will have a capacity to process 1,500 tonnes of fresh fruit bunches per day when its begins operations in two years, Bernama reported.
After the company’s AGM today, Zainal Azwar also said TH aims to produce one million tonnes of oil palm fresh fruit bunches by the end of next year, up from 823,825 tonnes estimated for this year.
He said the company also intends to increase its plantation size to 130,000 hectares by 2015 from its present 97,592 hectares.
"We are in the midst of completing the acquisition of PT Persada Kencana Prima," he said, adding that the deal which involved 11,837 hectares of land in Kalimantan will be completed next month.
AFFIN HOLDINGS BHD [] posted a net profit of RM150.8 million for the first quarter of 2013, down 9.2% year-on-year. But its revenue rose 2.2% year-on-year to RM732.8 million.
“The lower profit was mainly due to lower share of results of an associate of RM0.5 million for the first quarter of 2013, as compared to RM19.6 million in the first quarter of 2012,” said Affin in a statement.
Earnings per share was lower at 10.09 sen, compared with 11.11 sen for the same quarter in previous financial year.
Looking ahead, Affin said it is “cautiously optimistic of our prospects for the year ahead”.
DAYA MATERIALS BHD []’s net profit for the first quarter grew by 71% from a year earlier with a surge in revenue contribution from its oil and gas (O&G) and technical services segments.
The company’s net profit for its first quarter ended March 31, 2013 (1QFY13) came to RM5.03 million, with revenue at RM100.15 million.
In the previous corresponding quarter, Daya Materials’ net profit was RM2.94 million on revenue of RM30.34 million.
The group expects its results for the financial year ending 2013 to be “satisfactory”.
KPS CONSORTIUM BHD [] said its first quarter net profit more than doubled from a year earlier.
The tissue paper and wood-based building materials manufacturer said its net profit came to RM4.38 million in the first quarter ended March 31, 2013 compared to RM2.13 million previously.
Revenue rose 34% to RM128.91 million from RM96.17 million on “higher demand from customers," KPS said.
Fajarbaru Builder Group Bhd posted a net profit of RM1.55 million in the third quarter ended March 31, 2013 versus a net loss of RM.392 million a year earlier.
Revenue was more than doubled to RM68.59 million from RM25.36 million previously. The higher top line came mainly from higher construction income.
Looking ahead, Fajarbaru said its on-going construction jobs are expected to support its revenue growth.
ALUMINIUM COMPANY OF MALAYSIA [] Bhd’s (ALCOM) net profit for its final quarter grew 20 folds from a year earlier.
Its net profit for the fourth quarter ended March 31, 2013 (4QFY13) came to RM1.55 million on revenue of RM76.98 million.
In the previous corresponding quarter, ALCOM made a RM74,000 net with turnover of RM67.11 million.
“This positive result (year-on-year) was mainly due to the higher shipment volume coupled with better sales mix,” said ALCOM in a statement.
The company said it will also continue to develop on its construction and electronics segment within the domestic market through the ongoing government extension projects.
Instacom Group Bhd announced that it has been awarded a contract worth RM205 million in Sarawak.
It said it has accepted a letter of award (LOA) from 1 M Utama Sdn Bhd on May 20, 2013, for the installation and commissioning of telecommunication network and infrastructure and engineering works in Sarawak.
The LOA is subject to an agreement to be entered into by Instacom and 1M.
This three-year project is expected to contribute to the earnings and net assets of Instacom for the financial years ending 2013 to 2015, the company said.
Sino Hua-Ann International Bhd reported a net profit of RM3.34 million in the first quarter ended March 31, 2013 versus a net loss of RM19.91 million a year ago.
The producer of metallurgical coke said lower cost of sales had supported Sino Hua-An's bottom line. This was despite revenue falling 13% to RM334.16 million from RM382.12 million.
Looking ahead, the company said it is “cautiously optimistic” that the industry's recovery can be sustained this year.