Business & Markets 2013
Written by Ho Wah Foon of theedegemalaysia.com
Monday, 26 August 2013 19:55
KUALA LUMPUR (Aug 26): Based on corporate filings today, stocks that could attract investor eyeballs tomorrow include CIMB, United PLANTATION []s, Dayang, Eversendai, PBA, plantation firms, MRCB, SSB, Kossan, Guocoland, OSK Property, Hong Leong Industries and MESB.
CIMB Group Holdings Bhd’s second quarter net profit fell 5% from a year earlier on higher overhead cost and lower contribution from jointly-controlled entities.
CIMB said net profit fell to RM1.05 billion in the quarter ended June 30, 2013 from RM1.11 billion. Revenue however rose to RM3.44 billion from RM3.33 billion.
Quarter on quarter, its net profit fell 24%.
CIMB plans to pay a dividend of 12.82 sen a share for the quarter in review.
Looking ahead, CIMB said: "As it stands, the group thinks that at the operational level, the group will do better in the second half…However, more deals could be delayed and CIMB Niaga’s contribution will depend on how the Indonesian economy weathers the current headwinds."
UNITED PLANTATIONS BHD [] posted a net profit of RM57.1 million for the second quarter to June 30, down 26% year-on-year.
But its revenue for the quarter rose slightly to RM241.8 million, from RM232.1 million.
The company said the reduced profit was due to lower production of palm products and higher production costs in the current quarter.
But the less favourable performance of the plantation division in the current quarter was cushioned by the surge of profit of its refinery unit by 140% due to favourable hedging and trading positions taken.
Looking ahead, the plantation group said 2013 results will be less favourable than 2012.
DAYANG ENTERPRISE HOLDINGS BHD [] reported a 12% rise in second quarter net profit from a year earlier. Lower operating expenses, and contribution from associate Perdana Petroleum Bhd had mitigated the impact of lower revenue on the company.
The oil/gas support services provider said net profit rose to RM35.28 million in the quarter ended June 30, 2013, from RM31.62 million. Revenue fell to RM111.57 million from RM114.67 million.
Looking ahead, Dayang said it is positive on its prospects for the remaining quarters of FY13. This is because the firm has on-going jobs worth above RM4 billion expected to last at least until 2018, it said.
Eversendai Corp Bhd's wholly-owned unit, Eversendai Technics RMC FZE, won a RM24.7 million contract from Petronas Carigali Iraq Holding B.V.
The integrated structural steel turnkey and power plant contractor won the contract for the supply and delivery of Fuel Gas Conditioning Unit (FGCU) and associated equipment at the 15 megawatt power plant for Garraf Development Facility Operation.
Eversendai executive chairman Tan Sri AK Nathan said the project provides opportunity to further establish itself in the Middle East O&G sector.
"We will execute the FGCU in our Hamriyah Fabrication Yard as the new Ras Al Khaimah (RAK) waterfront fabrication yard is under development now and will be ready in the first quarter of next year," he said.
PBA HOLDINGS BHD [], Penang’s state-controlled water operator, will double its water-conservation surcharge (WCS) to 48 sen per 1,000 litres, from 24 sen, for monthly consumption above 35,000 litres in the state.
PBA said the higher WCS will be implemented beginning this September 1.
The group said it "had no choice but to introduce a higher WCS to promote water conservation immediately".
He said PBA can no longer afford the RM65.4 million water subsidy a year in Penang. This takes into account the company's operating profit of RM28.9 million in 2012 and expected capital expenditure of RM99.9 million in 2013.
Keck Seng (Malaysia) Bhd (KSeng), which led the march of plantation stocks today, could see its share price go either way tomorrow.
The main invigorating factor for the stock today came from a report in Nanyang Siang Pau which highlighted that its net tangible assets could be worth RM20.16, if all its landbank bought in the 1980s is re-valued. The top gainer closed at RM5.58, up 28 sen.
MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) posted a 13% rise in second quarter net profit from a year earlier as revenue fell. Lower expenses and non-controlling interest had supported the property developer's bottom line.
MRCB said net profit was higher at RM5.81 million in the quarter ended June 30, 2013 (2QFY13) compared to RM5.16 million. Revenue fell to RM185.73 million from RM341.51 million.
MRCB said "the group is expected to be on track for further growth".
SOUTHERN STEEL BHD [] reported a fourth quarter net profit of RM24.2 million for the three months to June 30, or a rise of 19.4% year-on-year.
Revenue for the quarter, however, fell to RM710.8 million from RM763.1 million.
KOSSAN RUBBER INDUSTRIES BHD [] posted a second quarter net profit of RM33.5 million for the three months to June 30, a rise of 41.7% year on year.
Revenue for the quarter rose to RM321.6 million, from RM304.8 million in the second quarter of 2012.
GUOCOLAND (MALAYSIA) BHD []’s fourth quarter net profit to June 30 was halved to RM14.1 million, compared to similar quarter a year ago.
Revenue was lower at RM74.8 million.
But a dividend of 2 sen per share was declared.
OSK Property Bhd posted second quarter net profit of RM11.2 million, up 74% year-on-year.
Its revenue rose 97% to RM103.7 million, from RM52.7 million in the second quarter of 2012.
A dividend of 5 sen per share, less 25% income tax, was declared.
HONG LEONG INDUSTRIES BHD [] reported a net profit of RM50.12 million for the fourth quarter to June 30, from RM28.98 million a year ago.
Revenue stood higher at RM599.58 million.
MESB BHD [] saw its net profit for the first quarter to June 30 tumble to RM834,000 from RM11.56 million in similar quarter a year ago.
Revenue fell to RM20.99 million, from RM17.70 million.