Stocks To Watch Genting, Hong Leong, TM, Tan Chong, Tradewinds, BDB, FGV, DRB, UEM

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 29 August 2013 20:19
KUALA LUMPUR (Aug 29): Based on corporate announcements today, companies that may catch eyeballs tomorrow include Genting, Hong Leong group,  Telekom Malaysia, Tan Chong, Tradewinds, BDB, FGV, DRB-Hicom and UEM-Sunrise.

GENTING BHD [] has proposed to declare a special interim cash dividend of RM0.50 less 25% income tax for every Genting share held.

In conjunction with this dividend payment, Genting has also proposed to undertake a restricted issue of warrants to provide shareholders with an option to reinvest some or all of the net dividend back into the company via the subscription of warrants.

The warrants are to be issued at RM1.50 per unit, on the basis of one warrant for every four Genting shares held.

In a separate announcement, Genting said its net profit for the second quarter came in at RM466.3 million or 13% lower than 2QFY12's earnings of RM534.5 million - due to higher depreciation, lower fair value gain on derivative financial instruments and lower gain on disposal of available-for-sale financial assets. 

Revenue was RM4.5 billion, from RM4.3 billion previously. 

Genting PLANTATION []s Bhd (GENP), a unit of Genting Bhd, also proposed to declare a special interim cash dividend of RM0.44 less 25% income tax for every share of GENP held.

It also proposed a non-renounceable restricted issue of up to 151,769,400 new warrants in GENP at an issue price of RM1.65 per warrant on the basis of one warrant for every 5 existing GENP shares held by the company’s shareholders.

HONG LEONG FINANCIAL GROUP BHD [] ecorded a net profit of RM389.6 million for the fourth financial quarter to June 30, which was a 52% rise over RM255.6 million posted in the fourth quarter in the previous year.

Earnings per share rose to 37.40 sen, from 24.6 sen.

For the quarter, revenue climbed 0.6% year-on-year to RM1.044 billion from RM1.037 billion.

For the full year to June 30, 2013, total net profits rose to RM1.49 billion from RM1.23 billion in the previous financial year. And total revenue rose to RM4.38 billion from RM4.16 billion.

The group said it had achieved another record profit before tax of RM2.63 billion for FY13, an increase of 9.9% year‐on‐year.

HONG LEONG BANK BHD [] announced that its net profit for the fourth quarter ended June 30 rose 2.7% year-on-year to RM416.43 million.

Its revenue for the quarter rose to RM974.98 million   from RM955.68 million.

The bank declared a dividend of 30 sen per share less 25% income tax.

For the full year, net profit rose to RM1.86 billion, from RM1.74 billion in the previous year. Revenue rose to RM4.00 billion from RM3.88 billion.

TELEKOM MALAYSIA BHD [] (TM) reported a 39% fall in second quarter net profit from a year earlier due to higher tax assets in the previous corresponding quarter.

But the company plans to pay a dividend of 9.8 sen a share for the quarter in review.

TM said net profit fell to RM213.84 million in the quarter ended June 30, 2013 (2QFY13). Revenue, however rose to RM2.61 billion from RM2.42 billion.

TM said net profit had risen mainly due to recognition of higher deferred tax income on unutilised tax incentives in last year’s corresponding quarter.

"The current quarter and financial period’s effective tax rate of the group is lower than the statutory tax rate primarily due to recognition of deferred tax income on unutilised tax incentives," TM said.

TAN CHONG MOTOR HOLDINGS BHD []’s net profit rose 56% to RM67.35 million in the second quarter ended June 30, 2013, from RM43.22 million a year earlier.

The company plans to pay a combined interim and special dividends of 15 sen a share in 2QFY13.

Tan Chong, which distributes Nissan cars in Malaysia, said revenue rose to RM1.14 billion from RM985.84 million.

Cumulative 1HFY13 net profit climbed to RM151.45 million from RM74.82 million a year earlier. Revenue was higher at RM2.58 billion, compared to RM1.97 billion, on higher vehicle sales.

TRADEWINDS CORPORATION BHD [] posted a net profit of RM69.6 million for the second quarter ended June 30, reversing its RM214.2 million losses a year ago. 

Revenue was RM346.2 million, up from RM125.6 million previously. 

The group said the significant increase in earnings came from a RM56.3 million gain on sale of land, the writing off of hotel property, investment property, impairment losses on plant and equipment and the recognition of provision for closure expenses in respect to the development of Tradewinds Centre. 

BINA DARULAMAN BHD [] (BDB) announced that its wholly owned unit Kedah Sato Sdn Bhd has obtained a water-linked project worth RM40.3 million from the Kedah government.

The company said Kedah Sato has received an interim letter of acceptance from Kedah’s government to supply and install water pipes in several places in the state.

“The amount of the project is RM40,300,000 and the   contract period shall be for 78 weeks commencing Sept 1, 2013, to Feb 28, 2015,” said BDB’s filing to Bursa.

“The project is expected to contribute positively to the group’s earnings for the financial years ending 2013 to 2015,” added the company.

Felda Global Ventures Holdings Bhd (FGV) said its net profit for the second quarter to June 30 surged 71% year on year to RM322.7 million from RM188.4 million.

But revenue for the quarter fell to RM2.99 billion, from RM3.54 billion posted in the second quarter of 2012.

For the half year to June 30, the plantation giant recorded total profits of RM459.4 million, a 20.7% higher than RM380.5 million in the first half of 2012.

Revenue totaled RM5.67 billion for the first half of 2013, compared to RM5.26 billion in similar period in 2012.

DRB-HICOM BHD [] reported a net profit of RM10.3 million for the first quarter to June 30, a fall of 68.5% year on year.

Its revenue also fell to RM3.05 billion from RM3.46 billion.

Reviewing its results, the diversified group said the decrease in revenue was due to lower sales in the automotive sector caused by unfavourable market sentiment during the quarter.

DRB-Hicom said lower profit was due to higher interest cost as compared to last year’s corresponding quarter.

UEM-SUNRISE BHD [] reported a net profit of RM107.3 million for the second quarter to June 30, flat compared to RM107.6 million posted a year ago. Revenue fell to RM488.9 million, from RM510.8 million.

However, for the half year to June 30 total profits jumped to RM318.4 million, from RM161.8 million posted in the similar period a year ago.

Revenue for the six months ended June 30, 2013 improved by 47.4% to RM1.20 billion, compared to RM814.6 million recorded in the same period of 2012.

The company attributed higher profit in the first half to the sale of 43.6 acres of land in Puteri Harbour with a total value of RM400.7 million which was accounted for during the 1st quarter of 2013.

The company’s managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said he is confident on prospects for 2013 due mainly to new launches which will be completed by the end of 2013.