Stocks To Watch Maybank, YTL, MISC, IHH, Lafarge, Jobstreet, Perdana Petroleum, Pet Dagangan.
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 23 May 2013 20:25
KUALA LUMPUR (May 23): Based on corporate results released on Thursday, stocks that may stir interest on May 27 include YTL group of firms, MISC, Maybank, IHH, Lafarge, Jobstreet, Perdana Petroleum and Pet Dagangan.
MALAYAN BANKING BHD []’s net profit rose 12% to RM1.51 billion in the first quarter ended March 31, 2013 from RM1.35 billion a year earlier.
Maybank said revenue climbed 5% to RM8.23 billion from RM7.87 billion previously.
It said net profit had risen on higher interest and Islamic banking income. The turnaround in its insurance business and less allowance for bad loans have also supported bottom line.
Looking ahead, Maybank expects its performance for 2013 to be in line with its internal targets. The firm is looking at a return on equity of 15% and loan growth of 12%.
YTL CORPORATION BHD [] said it posted a group net profit of RM289.8 million for the third quarter to end-March 2013, which was a fall of 20.5% year-on-year from RM364.8 million.
Basic earnings per share fell to 2.80 sen from 3.85 sen.
Revenue for the quarter was also lower, at RM4.75 billion compared to RM5.24 billion in previous similar quarter.
But for the nine months to March 2013, net profit attributable to shareholders increased 10.6% to RM944.2 million over RM854.0 million for the same period last year.
Revenue for the nine months to March totalled RM14.9 billion, a marginal decrease compared to RM15.1 billion for the preceding corresponding nine months ended March 31, 2012.
YTL group managing director Tan Sri Francis Yeoh Sock Ping said lower revenue was due mainly to the completion of property projects in Singapore and more competitive pricing in the cement industry.
The increase in net profit for the nine-month period, he said, was contributed mainly by the group’s hotels and power station O&M operations and an increase in share of profits from associated companies. The group’s utilities division remains the largest contributor.
MISC BHD [] returned to the black in the first quarter of 2013, from a loss a year ago.
For the quarter to end-March 2013, the state-controlled shipping giant posted a net profit of RM300.4 million, compared to a net loss of RM469.8 million.
Revenue for the quarter increased to RM2.38 billion, a 7.7% higher than RM2.21 billion posted in the first quarter of 2012.
The company said the increase in profit was largely due to lower operating costs from a smaller fleet of operating vessels, particularly for the petroleum and chemical businesses.
Lower vessel impairment in the current quarter of RM22.3 million compared to RM116.4 million in the 2012 corresponding quarter was another important reason for profit increase.
On outlook, MISC said 2013 is expected to be another “challenging year” due to weak demand growth, volatile fuel prices and excess shipping capacity.
IHH Healthcare Bhd announced that its net profit for the first quarter to March 2013 stood at RM127.3 million, marginally higher than RM122.8 million achieved in the previous corresponding quarter.
Revenue for the quarter grew by 29% to RM1.62 billion from RM1.26 billion in the same period last year.
Commenting on the results in a statement, IHH said: “This reflected the healthy revenue contributions from existing hospitals and reduced losses from Mount Elizabeth Novena Hospital.”
LAFARGE MALAYAN CEMENT BHD [] is positive on its outlook as it expects its results to be driven by key government infrastructure projects led by the Economic Transformation Programme (ETP) and 10th Malaysia Plan (10MP).
"We are optimistic about the continued growth in demand for building materials and solutions and believe that Lafarge's cement, concrete and aggregates businesses remain strongly positioned in these sectors," said chief executive Bradley Mulroney.
Lafarge is currently the exclusive supplier for the Manjung and Tanjung Bin power plants, KLIA2 as well as two Mass Rapid Transit (MRT) sections.
"We believe that our results this year will remain satisfactory,"Mulroney told the press after the company's AGM today.
JOBSTREET CORPORATION BHD []’s net profit for the first quarter ended March 31, 2013 rose 48% to RM15.35 million from RM10.36 million a year earlier, on the back of higher sales from online recruitment services.
The company said its revenue for the quarter increased 14.05% to RM43.18 million from RM37.86 million.
Earnings per share rose to 4.87 sen from 3.24 sen, while net asset per share was 72 sen.
The company also said it had revised its dividend policy to distribute up to 75% annually of the company's net profit beginning 2013.
On its prospects, the company said slow growth in the US in the face of recession in the euro area continued to impact the economic outlook and this may eventually lead to some slowdown in recruitment activity.
Perdana Petroleum Bhd has secured an estimated RM705 million job to lease six offshore vessels to its major shareholder DAYANG ENTERPRISE HOLDINGS BHD []. Both firms are oil and gas support-services providers.
Perdana Petroleum said it will supply five work barges and one work boat for five years to Dayang which owns 26% in the former.
"The vessels charter relates to the contract for the provision of hook-up, commissioning and topside maintenance services awarded by Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd to DESB (Dayang Enterprise Sdn Bhd," said the company.
The contract which comes with an optional one-year extension, begins in July this year.
PETRONAS DAGANGAN BHD []’s net profit fell 4% to RM237.1 million in the first quarter ended March 31, 2013, from RM246.21 million a year earlier.
The national oil firm's downstream-marketing arm told the exchange that revenue, however, rose 11% to RM7.62 billion from RM6.85 billion.
Petronas Dagangan said net profit had declined on higher operating cost amid a rise in depreciation and amortisation of its property, plant and equipment. Higher finance expenses had also curbed bottom line.
The company said it will pay an interim dividend of 17.5 sen a share less 25% tax for the quarter in review.
Looking ahead, the firm said its profits "may be impacted by fluctuations in international oil price, petroleum product costing and global economy".