Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 20 May 2014 19:48
KUALA LUMPUR (May 20): Based on news flow and corporate results released today, the stocks that may be in focus tomorrow could include the following:
AMMB Holdings Bhd reported a 15% rise in fourth quarter net profit from a year earlier as net interest and Islamic banking income increased.
Provision write-back and lower bad-loan allowance had also supported bottom line growth, AMMB said.
AMMB said net profit rose to RM463.7 million in the fourth quarter ended March 31, 2014 (4QFY14) from RM404.8 million. Revenue climbed to RM2.39 billion from RM2.35 billion.
AMMB's full-year net profit increased to RM1.78 billion from RM1.62 billion a year earlier. Revenue was higher at RM9.61 billion versus RM8.71 billion.
The group plans to pay a dividend of 16.9 sen for 4QFY14, bringing full-year payout to 24.1 sen.
Looking ahead, AMMB said wholesale deposit and loan growth would be driven by the implementation of projects under the Economic Transformation Programme.
Meanwhile, capital markets, investment banking, currency and commodity trading are expected to benefit from higher trade flow but domestic consumer loan demand may soften given the various lending measures to address high household debts.
Shangri-la Hotels (M) Bhd's net profit rose 17% to RM27.9 million in the first quarter ended March 31, 2014, from RM23.8 million a year earlier.
Shangri-la said revenue climbed to RM137 million from RM127.5 million.
Shangri-la said net profit and revenue rose, mainly on "strong growth" in the operating results of Shangri-la Hotel Kuala Lumpur and Rasa Ria Resort. Other hotels and UBN Tower had also performed better.
MISC Bhd is bidding for third-party liquefied natural gas (LNG) shipping projects in a move to diversify its business portfolio, Bernama reported.
"We are looking for new growth that will add value to our business, but talks with third parties are still in the preliminary stage," said president Datuk Nasarudin Idris.
The shipping and maritime logistics service provider, which is 62.67% owned by Petronas, is bracing itself for growing competition in the LNG shipping sector and cut dependence on Petronas contracts.
The sector faces freight rates pressure because there will be 37 new LNG vessels built by industry peers before 2017.
"The contraction in rates will have an impact on us, but our contracts are on a long-term basis and have good potential for extension," he told reporters after MISC's annual general meeting here today.
AirAsia Bhd’s net profit jumped 33.3% year-on-year (y-o-y) to RM139.7 million in the first quarter ended Mar 31, 2014, from RM104.8 million a year ago.
But revenue was flat at RM1.302 billion from RM1.300 billion a year earlier.
The budget airline said its revenue growth was supported by a 4% growth in passenger volume but the average fare was down 9% at RM164 as compared to RM180 achieved in the previous corresponding quarter.
Touching on its associate company, Thai AirAsia, the airline said net profit plunged to THB244.7 million from THB739.0 million in the previous corresponding quarter. However, revenue rose 7% y-o-y to THB6.46 billion from THB6.03 billion.
As for AirAsia India, which recently obtained the air operating permit from India, the airline said it recorded a net loss of RM12.4 million in the reviewed quarter.
On prospects ahead, AirAsia said: “The outlook for the second quarter this year should be seen in the context of the current prices of oil and aviation fuel while the operating environment in both Indonesia and the Philippines remains challenging.”
YTL Corporation Bhd’s profit jumped 41% year-on-year (y-o-y) to RM1.9 billion for the nine-month period ended Mar 31, 2014, from RM1.4 billion in similar period the previous year.
However, revenue fell a marginal 1.9% y-o-y to RM14.7 billion from RM14.9 billion.
YTL Corp declared an interim dividend of 10% or 1 sen per ordinary share of 10 sen.
In a press statement, YTL group managing director Tan Sri Francis Yeoh Sock Ping said: “Higher profit for the period was due primarily to better performance of the concrete and quarry businesses in our cement division.”
“This also includes contributions from the uniquely-styled Fennel and Capers condominium developments in our Sentul urban regeneration project.”
Yeoh said the consolidation of results from Starhill Global REIT in Singapore.
Better performance in the water and sewerage, mobile broadband and power generation sub-segments of YTL’s utilities division also bolstered profit for the nine months under review.
MBM Resources Bhd's net profit fell 29% to RM23.4 million in the first quarter ended March 31 from RM32.8 million a year earlier. Profit fell mainly on lower vehicle sales and start-up losses from new investments in manufacturing facilities.
MBM said revenue fell to RM508.2 million from RM609.9 million. MBM owns 20% in Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
Looking ahead, MBM said the automotive-sales environment remained challenging on cautious buyer sentiment amid rising cost of living.
JCY International Bhd expects better earnings from its business, which may facilitate a higher payout dividend this year.
Executive director James Wong said during a media briefing today that the company was quite pleased with its performance and that it could increase its dividends.
Wong added: "We are quite sure that the outlook is very positive after seeing some marginal players being phased out from the competitive market."
Yesterday, JCY International declared a single tier tax exempt interim dividend of 1.25 sen per share for the financial year ending Sept 30, 2014. It posted a net profit of RM38.1 million in its second quarter ended Mar 31 this year, a reversal of a net loss of RM20.78 million a year ago.
Hup Seng Industries Bhd’s net profit increased by 7% year-on-year to RM9.6 million for its first quarter ended March 31, from RM8.9 million in the previous year.
Revenue for the quarter was also up at RM64.5 million, compared to RM59.9 million in the year before.
Going forward, the group expects its operating environment to be challenging, due to the tough global economic environment, but said that it will focus on growing its top and bottom line growth.
DKSH Holdings (Malaysia) Bhd posted net profit of RM13.5 million for its first quarter ended March 31, 2014, up 15% from RM11.7 million in the previous year’s same quarter.
The group’s quarterly revenue also improved at RM1.29 billion, rising 4% year-on-year from RM1.24 billion in the year before.
The higher revenue was attributed to better performance of its good margin businesses, while certain lower margin business had reported a subdued performance.
“The group’s performance is expected to continue positively throughout 2014 based on a well-diversified portfolio of clients and customers, as well as a strong sales, marketing and distribution infrastructure with a capillary distribution reach,” said the company.
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