KUALA LUMPUR (July 28): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (July 29) could include: TNB, Public Bank, CIMB, Naim, Gamuda, Mudajaya, MAHB, MPCorp and PavREIT.
Tenaga Nasional Bhd's (TNB) net profit jumped 192% to RM2.31 billion for the third financial quarter ended May 31, 2016 (3QFY16) from RM789.4 million in the previous corresponding quarter.
The big leap in the utility group's net profit is mainly due to sharply lower recognition of over recoverability of ICPT (imbalance cost pass through) amounting to RM537.6 million in the quarter under review compared with RM1.82 billion a year ago.
Besides, the increase in electricity consumption also helped to boost TNB's earnings. Its quarterly revenue rose 22% to RM12.13 billion from RM9.91 billion in the previous year, according to its announcement.
Electricity sales grew 7% during the quarter.
"In the third quarter last year, TNB began making adjustments to its accounts to reflect the over recoverability of ICPT in its accounts, after reaching some agreements with the regulator. It was a catch up adjustment, the sum of RM1.82 billion captured three quarters worth of over recoverability," said TNB.
For the cumulative nine months ended May 31, 2016 (9MFY16), net profit climbed by 6% to RM5.61 billion from RM5.29 billion in 9MFY15, in line with the period's revenue increase to RM33.29 billion from RM31.54 billion.
Going forward, the group maintains a cautious outlook on its prospects, considering the uncertainties in the global environment.
Public Bank Bhd's second quarter net profit expanded by 5% to RM1.26 billion from RM1.2 billion a year earlier on higher net interest and Islamic banking income.
Public Bank said revenue for the second quarter ended June 30, 2016 (2QFY16) increased to RM5.02 billion from RM4.74 billion.
"The improved earnings was mainly due to higher net interest income and income from Islamic banking business which were partially offset by higher other operating expenses and lower other operating income," Public Bank said.
For 2QFY16, Public Bank declared a dividend of 26% or 26 sen, based on its shares' par value at RM1 each. The dividend's ex and payment dates fall on Aug 10 and 22 this year respectively.
For 1HFY16, Public Bank's net profit grew to RM2.49 billion from RM2.37 billion a year earlier. Revenue was higher at RM10.06 billion from RM9.34 billion.
Looking ahead, Public Bank said it will "continue to capitalise on its efficient customer service and service delivery" to maintain its market share in the Malaysian retail-banking segment.
CIMB Group Holdings Bhd has partnered with Fajr Capital, a leading private equity investor in the Middle East and wider Asia, in a bid to widen the marketing and distribution network of both firms' products and services.
CIMB said the partnership between CIMB and Fajr Capital will facilitate deal origination, cross-distribution and collaborative marketing of the firms' core products and services through their network in the Asia Pacific and the Middle East respectively.
The new partnership will enable CIMB to broaden its reach in the Middle East market, the filing read.
CIMB group chief executive Tengku Datuk Seri Zafrul Aziz said the partnership is another step towards business consolidation and resource optimisation in line with the group's recalibration strategies to achieve its T18 aspirations.
The partnership will focus on, among others, Islamic treasury, capital market solutions, asset management services and strategic investments, the filing stated.
Therefore, CIMB Group will shut down its operations in Bahrain once it has obtained the necessary approvals from relevant regulators.
Naim Holdings Bhd announced that its wholly-owned unit Naim Engineering Sdn Bhd, via a 70:30 joint venture (JV) withGamuda Bhd, has won a RM1.57 billion total works package for the Pan Borneo Highway.
The contract, awarded by Lebuhraya Borneo Utara Sdn Bhd, entails the development and upgrading of Phase 1 of the highway in Sarawak, covering the stretch from Pantu Junction to Batang Skrang.
The contract is for a 51-month period from the date of site possession.
Meanwhile, Mudajaya Corporation Bhd said it has clinched a RM1.33 billion contract under the same highway project. It will undertake the works together with Musyati Sdn Bhd under a 70:30 JV.
Mudajaya said the contract is for the development and upgrading of the stretch of highway from the Sungai Kua Bridge to Sungai Arip Bridge.
The contract is targeted to be fully completed by October 2020 with a construction period of 48 months from the date of the site possession, the filing read.
Malaysia Airports Holdings Bhd (MAHB) reported a net profit of RM9.38 million for the second quarter ended June 30, 2016 (2QFY16) against a net loss of RM19.88 million a year ago, mainly due to a significant drop in finance cost. Revenue for the quarter was RM997.6 million, up by 6.13% from RM939.96 million a year ago.
MAHB said the improvements were due to higher revenue and lower total cost but negated by lower other income. The decrease in cost was mainly due to lower finance expenses by RM59.5 million or 56.4%.
MAHB declared a single-tier interim dividend of four sen. Its ex and payment dates fall on Aug 10 and 26.
In the six months ended June 30, 2016 (1HFY16), MAHB's net profit more than doubled to RM26.39 million from RM12.24 million last year, while revenue grew by 11.06% to RM2.02 billion from RM1.82 billion in 1HFY15.
Moving forward, MAHB noted that the recent events globally and locally including Islamic State's threats have added some uncertainties and pose some downside risks to air travel.
Nonetheless, the group remains confident of the long-term growth prospects of its operations in Turkey.
Practice Note 17 (PN17) company Malaysia Pacific Corp Bhd (MPCorp) has inked a memorandum of understanding (MoU) with a Singapore company Terra Pontus Pte Ltd for the proposed disposal of a part of Wisma MPL for RM250 million.
MPCorp said it has sold some of the units in the 23-storey complex; and save for those units, Wisma MPL will be sold to Terra Pontus.
Wisma MPL comprises a 19-storey office tower over a 4-storey retail podium block as well as a two-level basement car park.
Both MPCorp and Terra Pontus have agreed to negotiate the terms of a definitive sale and purchase agreement (SPA) for the proposed disposal and will sign the SPA within two months from the date of the MoU.
In a separate filing, MPCorp said it has submitted an application for extensions of time up to Feb 28, 2017 to make a requisite announcement and up to April 15, 2017 to submit its regularisation plan to Bursa Malaysia.
Rental income from DaMen Mall and Intermark Mall, which Pavilion Real Estate Investment Trust (PavREIT) acquired at end-March, lifted the trust's net property income (NPI) for the second quarter ended June 30, 2016 (2QFY16) by 13.3% year-on-year.
The trust's quarterly NPI came in at RM81.4 million, compared with RM71.9 million a year ago. Revenue for the quarter also registered a growth of 14.7% to RM118 million from RM102.9 million in 2QFY15.
Meanwhile, it declared a distribution per unit (DPU) of 4.16 sen for the six months ended June 30, 2016 (1HFY16), or RM125.7 million in total, which is 1.8% higher than the RM123.5 million or 4.09 sen per unit distributed for 1HFY15. The latest DPU will be payable on Sept 6.
For 1HFY16, PavREIT registered an NPI of RM157.1 million, which is 8.4% higher than the NPI of RM144.8 million in the prior year's corresponding period; while cumulative revenue came in at RM224.7 million, 8% higher from the RM16.7 million in 1HFY15.
On its prospect, it said although the retail environment is challenging, marketing will continue to create differentiation and key attractions to build shopping experience to attract and retail shoppers' loyalty to the retail malls with operating cost being monitored to optimise efficiency.