Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 19 May 2014 19:46
KUALA LUMPUR (May 19): Based on corporate results and announcements today, stocks that may catch attention tomorrow could include the following:
JCY International Bhd has returned to the black with a net profit of RM38.1 million posted in the second quarter ended Mar 31, 2014, from a loss of RM20.8 million a year ago.
Revenue rose 18.4% year-on-year to RM475.3 million from RM401.4 million.
JCY said it recommended payment of a single tier tax exempt second interim dividend of 1.25 sen per share.
The electronics manufacturer said for the half-year period, net profit chalked RM68.4 million versus a loss of RM46.5 million in the previous period, while revenue recorded RM952.1 million from RM778.2 million a year earlier.
AirAsia X Bhd made a net loss of RM11.3 million for its first quarter ended March 31, 2014, compared to a net profit of RM50.2 million in the previous year’s same quarter.
However, revenue for 1QFY14 rose 40% to RM749.5 million from RM535.3 million in 1QFY13.
The group had attributed the loss to higher operating costs during the quarter, despite reporting higher revenue for all of its segments. Besides that, the airliner said that it had sacrificed yields as it expands capacity.
Going forward, the group expects its prospects to remain positive, barring unforeseen circumstances.
Faber Group Berhad (Faber) through its wholly-owned subsidiary, Faber Medi-Serve Sdn Bhd, today entered into an asset management services (AMS) agreement with Konsortium Prohawk Sdn Bhd (KPSB) which will see it providing AMS for the Women and Children’s Hospital (WACH) in Kuala Lumpur.
Under the agreement, total fees that will be accorded to Faber for providing the AMS services at WACH is RM1.03 billion over a period of 27 years.
WACH is a 600-bed, 12-storey hospital located within the vicinity of Hospital Kuala Lumpur. Once completed, it will replace the current Maternity Hospital Kuala Lumpur ward.
Malaysian Resources Corporation Bhd had more than doubled its net profit to RM12.0 million for its first quarter ended March 31, 2014, from RM5.3 million a year ago.
In contrast, revenue for the quarter declined by 22% to RM204.6 million from RM262.0 million in the previous year’s corresponding quarter, due to lower revenue contribution from the engineering and construction division and also the reclassification of rental revenue of Platinum Sentral to discontinuing operations.
However, the company stated that its property development division had reported improved performance in terms of revenue and profit before tax.
Fiamma Holdings Bhd's net profit rose 58% to RM11.4 million in the second quarter ended March 31, 2014, from RM7.2 million a year earlier. Revenue climbed to RM81.7 million from RM63.6 million.
In a statement to the exchange today, Fiamma said cumulative first-half net profit increased to RM19.7 million from RM15.2 million a year earlier. Revenue was higher at RM159.5 million from RM136.2 million.
The company plans to pay a single-tier interim dividend of three sen a share for the quarter in review.
Pelikan International Corp Bhd has been slapped with an unusual market activity (UMA) query after the stationery manufacturer’s recent share rally.
Since last Thursday, the stock had risen 30% from 99.5 sen to an intraday high of RM1.42 today.
In a phone conversation with theedgemalaysia.com today, Pelikan vice president Ho Ming Hon said he was not aware of any developments driving the stock's rise.
“Operationally speaking, we had recently completed our integration with Herlitz on March 1,” said Ho. Herlitz is a producer of paper, office supplies and stationary articles in Europe.
GUH Holdings Bhd will build a mixed development in Seberang Perai, Penang, with gross development value (GDV) of RM238 million, after its wholly-owned unit acquired a 99.46% stake in a firm holding the land.
The freehold land measuring 46 acres will see the construction of a residential and commercial development that is expected to commence in the first half of next year.
GUH said its wholly-owned subsidiary Notable Empire Sdn Bhd (NESB) had yesterday entered into a share sale agreement with Leader Universal Properties Sdn Bhd for the acquisition of 99.46% of equity interest in Million Crest (M) Sdn Bhd (MCSB).
It added NESB will acquire the stake in MCSB for RM57.5 million, which will be funded by internally-generated funds and bank borrowings.
In a separate announcement, GUH reported its net profit rose 8% year-on-year (y-o-y) to RM6.7 million in the first quarter ended Mar 31, 2014, from RM6.2 million. Revenue jumped 24% y-o-y to RM76.8 million from RM61.9 million.
Malaysian Airline System Bhd, which logged a second day of sharp decline in share price to hit a record low today, may continue to be in focus.
The fall today was mainly due to the prime minister’s comment that he was not ruling out bankruptcy as an option for the loss-making carrier.
The slide could add urgency to talk that the airline, which posted big quarterly loss after the disappearance of flight MH370, might need a financial rescue from state investor Khazanah Nasional Bhd, which owns 69 percent of the company.
Bankruptcy might be one of several options for the airline to restructure after years in the red, the Wall Street Journal reported Najib Razak as saying.
Guan Chong Bhd's net profit fell 68% to RM5.3 million in the first quarter ended March 31, 2014 from RM16.5 million a year earlier.
The cocoa processor said revenue, however, rose to RM479.6 million from RM364.3 million.
"Against 1Q13 net profit of RM16.5 million, net profit for 1Q14 was 68% lower, mainly due to the higher selling prices of cocoa solids previously before the prices slumped in mid-2013.
"In addition, inventory write-down and higher interest expenses also contributed to the decreased net profit compared to the previous corresponding quarter. Basic earnings per share (EPS) stood at 1.11 sen versus 3.47 sen in 1Q13," Guan Chong said.
Oldtown Bhd announced today it is expanding into the Australian market.
The company said that its unit, Kopitiam Asia Pacific Sdn Bhd, has executed a master license agreement (MLA) with OTK (Australia) Sdn Bhd and Mr. Leong Kwan Yew.
“Oldtown wishes to expand into the Australia market as part of its plan to venture into other territories. The licensor has built up a substantial reputation and goodwill in the business…, the granting of license to the Master Licensee will enable the setting up of a network of outlets in the territory,” said the company.
The duration of the MLA is five years and maybe renewed for another five years, subject to conditions.