Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 30 April 2014 19:58
KUALA LUMPUR (April 30): Based on news flow and corporate announcements today, the stocks that may be in focus on Friday could include the following.
The market is closed for Labour Day tomorrow.
Southern Steel Bhd’s net profit for its third quarter (3QFY14) fell 60% to RM7.7 million, from RM18.8 million a year earlier, due mainly to lower selling prices of steel and related products.
According to its statement to the bourse, revenue fell by 3% to RM706.1 million from RM725.0 million in the previous year’s same quarter.
The group’s profit before tax (PBT) declined to RM10.6 million versus RM25.3 million in the previous same quarter.
For the nine months to March 31, 2014, net profit was lower at RM5.6 million from RM18.0 million in the previous corresponding period, while revenue decreased to RM2.09 billion from RM2.12 billion.
Going forward, the group expects its performance in the fourth quarter to continue improving despite softer selling prices, on the support of sustained local demand.
LBS Bina Group Bhd said for the financial year ended 31 December 2013, it recorded revenue and profit before tax (PBT) of approximately RM534 million and RM427 million respectively. These represent a 5 per cent increase in revenue and 469% increase in PBT over the result recorded in 2012.
The improved PBT for 2013 was mainly due to the gain from the disposal of its China assets and profit contribution from on-going projects such as Pearl Villa, Royal Ivory, Royal Ivory 2, Royal Garden, BSP Skypark, I Hub Puchong in Bandar Saujana Putra, D’ Island Residence in Puchong, Brinchang Square and SomerSquare in Cameron Highlands and Min Garden in Batu Pahat.
The property company said it achieved sales of RM621 million in the year 2013.
It plans to launch new projects in Pahang, Klang Valley, Batu Pahat and will continue to source for strategic development land to further enhance its performance.
“With 19 ongoing projects, unbilled sales of approximately RM691 million as at 31 March 2014, new project launches in year 2014, the group is confident of achieving further improvement in its performance for the financial year ending 31 December 2014,” it said.
Westports Holdings Bhd expects its container throughput, measured in twenty-foot equivalent units (TEUs), to grow 5% to 10% this year, its CEO Ruben Emir Gnanalingam said today.
He added Westports is targeting a profit before tax margin of 38% going forward.
Speaking to reporters after Westports 21st annual general meeting, Ruben asserted that the port operator was not 'super concerned' over how the P3 alliance of major shipping lines Maersk, MSC and CMA CGM would affect Westports.
"CMA CGM is undertaking a restructuring of its shipping services. Though this may see lesser volume from them at Westports, we are not concern, considering that general growth comes from trades in Africa, intra-Asia and Australia," Ruben said.
Malayan Banking Bhd expects its debit card billings to rise by 20% to RM7 billion this year from RM5.7 billion last year, boosted by its first new Maybank Visa Platinum Debit card.
Head of Regional Cards and Wealth B. Ravintharan said the new card aims to tap into the growing acceptance of debit transactions by Maybank cardholders.
"We have been seeing significant increases in the number of debit transactions last year, when the bank recorded more than 25 million debit transactions worth RM5.7 billion.
"We are expecting this to be further boosted with the new Maybank Visa Platinum Debit card with payWave," he said in a statement.
SCGM Bhd, which recently attracted institutional investor interest, is planning to build a new factory worth RM4 million to boost the company’s annual revenue by RM20 million.
In an interview with theedgemalaysia.com, company Chairman Datuk Lee Hock Seng said the new two-storey factory will house new production equipment for plastics cups.
“This project will begin in November 2014 and will contribute more than RM20 million to the company at full capacity,” he said.
He added that the company is expected to achieve its revenue target of RM100 million for the FY2014.
Lee said that his company was looking to further its reach into India. SCGM currently owns businesses in North America, Oceania, Europe and Asia.
As SCGM share is now on the radar of institutional investors, Lee said he is prepared to sell the company if a “fair and right” price is offered. He said: “I am already 63. I don’t wish to work forever.”
Last week, theedgemalaysia.com reported that institutional investors had bought into the company and this had caused SCGM share to hit record high of RM1.45 per share on Monday.
Sumatec Resources Bhd today began rig operations at its Rakushechnoye oil field in Kazakhstan.
In a statement today, Sumatec said this was a significant step in raising oil production from the Rakushechnoye field. Sumatec's wholly-owned subsidiary Sumatec Oil & Gas LLP and its business partner CaspiOilGas LLP are undertaking operations there.
It said the first workover well was due for completion and production within three weeks.
Sumatec said it planned to have 15 oil-producing wells by end-2014. It expects to achieve its target of 2,000 barrels a day from these 15 wells.
Ecofirst Consolidated Bhd's net profit soared 411% to RM9.2 million in the third quarter ended February 28 from RM1.8 million a year earlier, mainly on the property developer's term-loan interest waiver.
Ecofirst said revenue fell to RM5.1 million from RM16.2 million.
Cumulative nine-month net profit rose to RM34 million from RM11.3 million a year earlier. Revenue was lower at RM18.1 million versus RM65.1 million.
Looking ahead, Ecofirst said rental income from its retail malls in Seri Kembangan, Selangor and Segamat, Johor, would form a substantial recurring income source for the group.
Industronics Bhd said it had on April 29, 2014 disposed in the open market 8 million shares in Solution Engineering Holdings Berhad (SEHB), listed on ACE Market, representing 4.31% of the existing issued and paid up share capital of SEHB at the average disposal price of RM0.1318 each totaling RM1,054,610.00.
Upon completion of the disposal, the company’s shareholdings in SEHB would be reduced to 6,541,900 SEHB’s shares, representing approximately 3.52% of the issued and paid-up share capital of SEHB and would hencerforth cease to be a substantial shareholder of SEHB.
The company expects to incur a loss of approximately RM1.67 million from the disposal as compared to the carrying value of investment for the said 8,000,000 SEHB shares of RM2.72 million.