Stocks To Watch AirAsia, BatuKawan, KLK, Hibiscus, WhiteHorse, R.Sawit, B.Armada, Scomi, L&G

Business & Markets 2013
Written by Ho Wah Foon of   
Wednesday, 20 November 2013 20:26

KUALA LUMPUR (Nov 20): Based on corporate results released today, the stocks to watch tomorrow could include AirAsia, Batu Kawan, KLK, Hibiscus, White Horse, R.Sawit, B.Armada, Scomi and Land & General.

AirAsia Bhd’s net profit plunged 77.5% year-on-year for the third quarter ended Sept 30 (3Q13). The profit slumped to RM35.48 million, from RM157.81 million in the same corresponding period last year.

But revenue increased slightly to RM1.28 billion, up from RM1.24 billion a year ago.

The budget airline said revenue growth was supported by a 11% growth in passenger volume but the average fare was down 12% at RM169 as compared to RM191 achieved in the third quarter of last year (3Q12).

Furthermore, ancillary income per passenger increased from RM40 to RM41 y-o-y only. The seat load factor was at 77% in the same period last year.

For the nine months period (9M13), the airline recorded net profit of RM198.62 million, down sharply from RM486.20 million in Jan-Sept 2012. Revenue rose to RM3.84 billion from RM3.59 billion.

Batu Kawan Bhd’s net profit fell 39.2% in the fourth quarter ended September 30, 2013 (4QFY13) from a year ago, due to lower income from plantation associate Kuala Lumpur Kepong Bhd (KLK).

In a statement to the exchange, Batu Kawan said it posted a RM125.4 million net profit in 4QFY13 compared to RM206.4 million. Revenue rose 14.9% to RM99.7 million from RM86.7 million 

"The group profit before tax dropped 31% to RM146.33 million (2012: RM211.80 million) mainly affected by lower profit contribution from our plantation associate, Kuala Lumpur Kepong Bhd," Batu Kawan said.

For the quarter in review, Batu Kawan plans to pay a dividend of 40 sen a share.

For the full-year, Batu Kawan's net profit fell 20.1% to RM483.7 million from RM605.7 million a year earlier. Revenue came to RM362 million, a 7.6% increase from RM336.5 million.

Kuala Lumpur Kepong Bhd (KLK) said its net profit for the fourth quarter to Sept 30 fell 39% year on year to RM258.0 million, from RM422.3 million in the second quarter of 2012, mainly due to lower prices of rubber and palm oil.

But revenue stayed largely unchanged at RM2.415 billion.

In its filing with Bursa Malaysia today, KLK declared final div of 35 sen/share.

For the full financial year to September 2013, the major plantation group recorded a total net profit of RM917.7 million, down from RM1.2 billion in the last financial year. Total revenue also fell to RM9.1 billion, from RM10.6 billion in previous year.

Reviewing its fourth quarter performance compared to last year’s similar quarter, the company said plantations profit fell 22.0% to RM213.2 million due to weaker prices of palm oil and rubber.

But manufacturing sector's profit surged 124.9% to RM105.9 million, with the oleochemical division recording a sharp rise in profit of 88.3% to RM95.3 million.

The group expects a higher profit for the current financial year ending September 2014.

Hibuscus Petroleum Bhd posted a net profit of RM12.6 million for the second quarter to September 2013, compared to a loss of RM2.9 million in similar quarter the previous year.

During the quarter, the group recorded revenue of RM3.0 million, an increase of RM1.1 million as compared to RM1.9 million in the corresponding three-month period in the prior year.

“Such increase in revenue is mainly due to higher revenue earned from project management, technical and other services fees from Lime and HIREX,” the company told Bursa Malaysia.

While profit primarily rose from the recognition of gain of RM12.4 million on dilution of interest in HIREX from 48.24% to 41%, the reversal of unrealised foreign exchange loss from the previous quarter of RM3.3 million was another contributing factor.

Eksons Corporation Bhd expects to record a net gain of approximately RM52.3 million after minority interests, from the disposal of land in Selangor for the financial year ending March 31, 2015.

Eksons said the net gain is equivalent to approximately 32 sen per share.

The plywood manufacturer said it had today via its sub-subsidiary unit Russella Teguh Sdn Bhd entered into a Sales and Purchase Agreement with Lembah Penchala Sdn Bhd for the land disposal.

White Horse Berhad’s net profit rose by 40% year on year to RM11.8 million for the third quarter to September 2013. But its revenue fell by 1% yoy to RM148 million.

For the nine months to September 2013, net profit jumped 30% year on yaer to RM39.6 million. Revenue rose 5% yoy to RM456 million.

“The decreased revenue for the third quarter was due to the festive season in August 2013, and the increase in gross profit and profit before tax was mainly due to the higher selling price (of tiles),” said White Horse in their filing to Bursa Malaysia.

But the company said outlook remains bleak.

Rimbunan Sawit Berhad reported lower profits in its financial results for the third quarter ended Sep 30, 2013. Profit fell about 11% to RM11.1 million, from RM12.4 million a year ago.

Revenue for the quarter also fell to RM82 million from RM94.4 million.

Reviewing its third quarter results, the group attributed the fall in revenue to the decrease in average selling prices for crude palm oil and palm kernel.

Bumi Armada Bhd’s net profit for third quarter ended Sept 30 (3Q13) came out stronger than previous year’s corresponding quarter, as the group’s net earnings increased by 27.6%.

The group’s profit increased to RM121.3 million, from RM95 million in the same quarter last year. Revenue rose to RM546.3 million, from RM461.7 million.

Bumi Armada’s chief executive officer Hassan Basma said: “The group’s revenue, net profit and earnings before interest, tax, depreciation and amortisation (EBITDA) reflect our strong and consistent growth strategy underpinned by good execution and increased activities in our three established business segments – floating production storage and offloading (FPSO), offshore support vessel (OSV) and transportation and installation (T&I) business units.”

For the nine months period (9M13), the group’s net profit rose by 23.9% to RM342.9 million, from RM276.7 million in the same corresponding period.

Revenue increased by 28.4% to RM1.5 billion from RM1.2 billion.

Scomi Group Bhd’s net profit stood higher at RM3 million in the second quarter ended Sept 30, 2013, while revenue registered RM385 million.

No year-on-year comparisons were provided as the group’s annual reporting date was changed to March 31 to December 31.

The drilling fluids and related engineering services firm said for the half-year period, profit chalked up RM4.8 million while revenue raked in was RM762 million.

Scomi said compared to the first quarter (RM1.5 million), the larger profit was principally due to a lower loss recorded by its transport solution division.

Land & General Bhd’s net profit skyrocketed 10 times year-on-year to RM23 million in the second quarter ended Sept 30, 2013, up from RM2 million a year ago.

Revenue also soared 179% y-o-y to RM140 million from RM50 million.

In a filing to the stock exchange, the property firm said the improved profit stemmed from the property division where it posted an operating profit of RM12.1 million.

Land & General said the significantly larger revenue was also due to its property division that collected cumulative sales locked in for Elements@Ampang and Damansara Foresta at 80% for the reviewed quarter.

For the half-year period, the firm registered profit of RM34 million from RM10 million a year earlier, while revenue raked in was RM230 million versus RM99 million in the previous corresponding quarter.