Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 27 March 2014 19:46
KUALA LUMPUR (March 27): Based on news flow and corporate announcements as at 7.30 pm today, the companies that may be in focus tomorrow include:
Telekom Malaysia Bhd is buying a controlling 57% stake in Green Packet Bhd's unit Packet One Networks (M) Sdn Bhd (P1) for RM350 million. P1 is a high-speed Internet network infrastructure provider.
Telekom said its wholly-owned subsidiary Mobikom Sdn Bhd was buying new shares in P1 under an investment agreement with Green Packet and its unit P1, and South Korea-based SK Telecom Co Ltd.
"The proposed investment presents TM (Telekom Malaysia) with an avenue to improve its value proposition to customers and…expanding into the mobile broadband space,” said TM.
"The principle of this collaboration is about jointly creating value in the future. The partnership provides an LTE (Long Term Evolution)-ready platform for us to more efficiently roll out wireless-broadband products and accelerate time-to-market for our customers,” TM said.
Currently, Green Packet and SK Telecom own 55% and 35% respectively in P1.
Upon completion of the deal, TM, Packet One and SK Telecom will hold 57%, 30% and 13% respectively in the expanded issued share base of P1.
For Green Packet, the proceeds from the proposed share sale is intended for use by P1 for the settlement of certain debts and trade payables, for P1’s working capital purposes and other expenditures.
TM shares were last traded at RM6.20. Green Packet's latest closing price was 52 sen.
Yinson Holdings Bhd’s net profit multiplied 5.4 times to RM26.3 million in the fourth quarter ended Jan 31, 2014, from RM4.8 million a year ago.
Revenue jumped 46.7% year-on-year to RM253.5 million from RM172.7 million.
The firm said its profit grew quarter-on-quarter (q-o-q) to RM32.3 million from RM16.9 million.
The profit growth was mainly attributable to increase in contribution from the marine and transport segments and gain on a bargain purchase of RM48.9 million.
For the full-year period, net profit chalked RM67.5 million versus RM33.9 million in the previous year, while revenue raked in RM945.9 million from RM865.2 million a year earlier.
“The group expects operational results for the next financial year to be better due to contribution from newly acquired business and the coming on-stream of the floating production storage offloading operations in the second half of the next financial year,” said Yinson.
Gamuda Bhd’s net profit for its second financial quarter ended Jan-31, 2014, rose to RM170.1 million from RM156.9 million in similar quarter a year ago. Revenue rose to RM517.6 million, from RM500.2 million.
For the half year to end-January 2014, its net profit rose to RM335.6 million from RM302.3 million in the half year to end-January 2013. Revenue rose to RM1 billion from RM953.4 million.
The company said the increase in profit for the current year to date resulted from higher contributions from all divisions – construction, property development, water and expressway concession.
“The group anticipates an improved performance this year from on-going construction projects, substantial unbilled sales of the property division and steady earnings from the water and expressway concessions division,” it said.
Malaysian Airlines System Bhd (MAS) said it has received a petition filed in the US Court on behalf of one of the passengers on board flight MH370 against the Boeing Company and MAS.
“Our lawyers have been briefed and are on standby to deal with this although it has not yet been formally served," the statement said
The airline clarified that this was not a law suit but a request for information. “We understand that this is not a law suit but a request through the courts for information.”
Astino Bhd’s net profit plunged 50.7% year-on-year (y-o-y) to RM4.6 million in the second quarter ended Jan 31, 2014, from RM9.3 million.
Revenue also fell 18.6% y-o-y to RM116.7 million from RM143.4 million.
The manufacturer of PVC doors and metal roof sheeting said the significantly lower profit was mainly due to decrease in sales and profit margin.
The decrease in group turnover for the current quarter was mainly due to lower overseas demand for its products, Astino said.
For the half-year period, net profit stood at RM10.7 million versus RM16.6 million in the previous corresponding period, while revenue recorded RM237.0 million from RM263.3 million.
Life insurance firms in Malaysia are all affected by the policy claims of families of passengers in missing flight MH370, according to its association.
The 14 insurance companies are Allianz Life Insurance Malaysia Bhd, AmLife Insurance Bhd, AXA Affin Life Insurance Bhd, AIA Bhd, Great Eastern Life Assurance Bhd, Prudential Assurance Malaysia Bhd, Etiqa Insurance Bhd, Hong Leong Assurance Bhd, Manulife Insurance Bhd, MCIS Zurich Insurance Bhd, Sun Life Malaysia Assurance Bhd, Tokio Marine Life Insurance Bhd and Uni Asia Life Assurance Bhd.
Kim Loong Resources Bhd’s net profit for its fourth quarter rose 43% to RM20.1 million from RM14.1 million in the previous year’s same quarter.
Revenue had increased by 20% year-on-year to RM197.4 million from RM164.0 million.
“The increase in revenue and profit for the current quarter were due to higher palm oil prices despite lower fresh fruit bunches production,” said the group.
For the full year, net profit rose to RM61.3 million from RM53.9 million in the previous year, while revenue increased slightly to RM640.5 million from RM637.2 million.
Going forward, Kim Loong expects to perform better in FY15 as it plans to improve production, while also benefiting from favourable palm oil prices.
Hiap Teck Venture Bhd’s net profit increased 3.1 times to RM7.3 million in the second quarter ended Jan 31, 2014, from RM1.8 million a year earlier.
But revenue fell 7.8% year-on-year to RM259.1 million from RM280.9 million.
The steel manufacturer attributed the higher profit mainly to improvement by its manufacturing division as a result of lower cost of production.
However, Hiap Teck said the decline in revenue was attributed to lower sales in its trading division.
For the half-year period, net profit posted RM21.3 million versus RM2.8 million in the previous corresponding period, while revenue registered RM529.6 million from RM554.0 million a year ago.
George Kent (Malaysia) Bhd announced net profit for the last quarter of 2013 rose 75% to RM18.3 million from RM10.5 million. Group revenue rose 118% to RM266.8 million compared to RM122.6 million achieved in the fourth quarter of FY2013.
Net profit for the full year rose to RM35.9 million, up 41% from RM25.6 million in FY2013. Revenue rose to RM506.3 million, up 83% from RM276.8 million.
The company proposed a final single tier dividend of 4 sen.
Tan Sri Tan Kay Hock, chairman of George Kent Malaysia said: “The group delivered a stellar performance in FY2014, boosted by growth in both our core divisions of water and construction and manufacturing, meters and industrial products.”
On prospects, the company is actively pursuing new contracts and sees potential opportunities to secure contracts from new phases of the MRT and LRT lines.