Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Thursday, 14 March 2013 19:46
KUALA LUMPUR (Mar 14): Based on announcements to Bursa and news flow today, companies that may attract investor interest on Friday (March 15) could include Astro, SP Setia, Top Glove, MBfH, Salcon, UEM and BHIC.
Astro Malaysia Holdings Bhd recorded a net profit of RM83.2 million for its fourth quarter ended Jan 31, 2013, a 47% fall from the RM157 million it posted in the last corresponding quarter.
This was due to a reduction in interest income of RM41.4 million as well as higher depreciation of RM57.5 million which resulted in lower tax expenses by RM22.3 million.
For its full year to January 2013, Astro recorded a net profit of RM418 million, down 33.5% from the RM629 million it saw last year. But its 2013 revenue came in at RM4.3 billion, up by 13.2% compared to 2012’s RM3.8 billion.
Looking forward, Rozhan added the group was now aiming to convert the rest of its residential customers to the Astro B.yond platform by the end of January 2014.
SP SETIA BHD [] announced that its net profit for its first quarter to end-January 2013 rose 25.5% year-on-year to RM92.91 million on the back of a 39.86% jump in revenue to RM687.55 million.
“The increase in revenue is mainly contributed from higher revenue recognition from residential and commercial PROPERTIES [] in the Klang Valley and Johor Bahru as a result of higher overall group sales achieved since FY2011,” the group said in a statement.
S P Setia added that the group had achieved total sales of RM2.02 billion in the first four months of its financial year ending 31 October 2013. This represents a 64% increase compared to the same period of the previous financial year.
Top Glove Corp Bhd expects to report better numbers in the second half of the current financial year in anticipation that the company will sell more gloves at higher prices. This follows a year-on-year and quarterly decrease in its second quarter net profit.
Top Glove's first-half net profit rose 27% to RM107.81 million from RM84.89 million a year earlier while revenue climbed 5% to RM1.16 billion from RM1.1 billion. In quarterly terms, 2QFY13 net profit fell 12% from RM57.49 million in the preceding 1QFY13.
Top Glove said net profit fell 6% to RM50.32 million during the quarter from RM53.46 million a year earlier while revenue rose 5% to RM576.42 million from RM548.99 million.
Bottom line was hurt by higher labour expenses due to Malaysia's minimum wage policy which has been implemented since January 1, 2013.
Synthetic rubber or nitrile gloves will be a crucial growth driver for Top Glove in the near term.
MBf HOLDINGS BHD []’s CEO and largest shareholder Tan Sri Dr Ninian Mogan Lourdenadin raised the takeover offer of its shares to RM1.70 per share and 70 sen per warrant.
However, this revised price for its share is still inferior to the company’s book value of RM2.37 per share, or 39.41% higher than the new offer price.
Dr Lourdenadin needs to reach an acceptance level of more than 98% before he can compulsorily acquire the rest of the shares not already owned by him.
His current stake, as of close of trading today, is 537.1 million shares or 93.02%, which was 0.25% higher than the 92.77% stake that was registered yesterday (13 March).
SALCON BHD []’s wholly-owned unit, Salcon Engineering Bhd, has obtained two awards for water works worth a total of RM57.85 million from Sri Lanka.
The contract duration of the project is 728 days commencing within 14 days from 11 March 2013, and there is no option for renewal, said the statement.
“The Project is expected to contribute positively towards the earnings and net assets of Salcon Group for the period of the Project,” Salcon said.
UEM Group Bhd’s 65% owned unit, Konsortium ProHawk Sdn Bhd, has inked a RM848 million agreement with the government of Malaysia to construct a 600-bed 12-storey women and children’s hospital.
The project, targeted to start in September this year, will be located in the vicinity of Hospital Kuala Lumpur. It is due to be completed in 2016.
BOUSTEAD HEAVY INDUSTRIES CORP [] Bhd announced that its sub-subsidiary company, Contraves Advanced Devices Sdn Bhd, has today received works contract from Boustead Naval Shipyard Sdn Bhd (BNS) worth RM182.25 million.
The award received is in relation to the contract for the Second Generation Patrol Vessels / Littoral Combat Ships, which was awarded to BNS by the government of Malaysia.
The award is to supply BAE Systems Bofors Medium Calibre Gun 57 Mk3 with Stealth Cupola at a total value of Swedish Krona SEK375 million or RM182.25 million, over 10 years from 2 October 2012.
“The awarded works are expected to have a positive impact on the earnings of the company for the financial year ending 31 Dec 2013 and subsequent financial years,” BHIC said.