Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 08 May 2014 19:38
KUALA LUMPUR (May 8): Based on corporate announcements today, the following companies may be in focus tomorrow:
Petronas Chemicals Group Bhd (PetChem) reported lower net profit of RM749 million for its first quarter ended March 31, 2014, falling 32% from RM1.11 billion in the previous year’s same quarter.
Revenue was also down at RM3.81 billion in 1QFY14, compared to RM4.46 billion in 1QFY13.
The group attributed the fall in revenue to lower volumes and softening prices for two business segments (olefins/derivatices, fertilisers/methanol), which translated into lower profit for the quarter.
Barakah Offshore Petroleum Bhd announced that its subsidiary, PBJV Group Sdn Bhd, has bagged an award from Petronas Dagangan Bhd for the procurement, construction and commissioning of biodiesel storage and blending facilities in East Malaysia.
The contract is valued at RM29 million, and is expected to commence immediately. The works are scheduled to be completed by September 2014.
Tropicana Corp Bhd announced it is selling a 1.3ha (3.138 acre) land along Kuala Lumpur's Jalan Bukit Bintang to a company jointly owned by Tropicana and Hong Kong-listed developer Agile Property Holdings Ltd for RM448.4 million cash.
After the sale, Tropicana stands to net a gain of RM145 million, translating into an incremental earnings per share of 11 sen.
The share price of Tropicana jumped by about 3% when trading of the property company’s share resumed at 2.30 pm today, after suspended in the morning.
At market close, the company’s share price was flat at RM1.59, after hitting a high of RM1.64.
MSM Malaysia Holdings is eyeing another joint-venture (JV) and merger and acquisition (M&A) deal this year, Bernama reported.
This follows the signing a memorandum of understanding (MoU) to form a joint venture (JV) with UAE-based Al-Khaleej International Ltd here today.
MSM Malaysia Chief Executive Officer Datuk Sheikh Awab Abod said the JV will develop a new state-of-the-art sugar refinery at the Port of Tanjung Pelepas. It comes with a joint investment of between US$250 million and US$270 million.
Upon the expected completion of the refinery in 2016, MSM Malaysia's production capacity will be boosted to 3.25 million MT per annum from current 1.25 million.
Fraser & Neave Holdings Bhd (F&N) expects an 8%-10% growth in revenue this year, its CEO Somsak Chayapong said today.
Somsak said the growth will come from all of F&N's divisions -- Soft Drinks, Dairies Malaysia and Dairies Thailand -- except its property division.
"We believe our top-line would be better with our growth strategy for soft drinks and dairy products," he said at F&N's 2Q financial results briefing.
China Stationery Limited’s (CSL) said a recent fire at its factory in Fujian Province, China, has affected 40% of its total production capacity from its five plants.
On April 8, CSL reported it expected disruption to its operations for the next two or three months due to the fire that started at about 1.30 am on April 4 this year.
CSL said the area gutted by the fire measures approximately 10,000 square metres, constituting 20% of the total floor area of the five plants.
CSL said it has insurance coverage, but the firm and its insurance firm were unable to ascertain the amount of damage/loss as the affected production plant has been sealed off by the Chinese police authority.
Unisem (M) Bhd posted a net profit of RM9.3 million in the first quarter ended March 31, 2014 from a net loss of RM9.7 million a year earlier. Revenue fell to RM228 million from RM249.7 million.
The semiconductor manufacturer Unisem said revenue fell on lower sales volume.
"The improvement in net profit for the current quarter was primarily attributable to increased gross profit margin arising from product mix change, grant income received by a foreign subsidiary and lower overhead costs in PT Unisem after the restructuring exercise.
"The directors expect the performance of the group to continue to improve for the remaining period to the end of the financial year," Unisem said.
Borneo Oil Bhd proposed to undertake the following:-
i) A par value reduction via the cancellation of RM0.90 of the par value of every existing share of RM1.00 each in the issued and paid-up share capital of Bornoil;
ii) A private placement of up to 20% of the issued and paid-up share capital of Bornoil at an issue price to be determined after the proposed par value reduction;
iii. Diversification of the existing core businesses of Bornoil to include mining and its related activities.
Perisai Petroleum Teknologi Bhd announced that its 51% subsidiary, Perisai Offshore Sdn Bhd, has secured a letter of award from Petronas Carigali Sdn Bhd for the provision of the jack up drilling rig, Perisai Pacific 101.
Under the contract, the jack up drilling rig will be provided to Petronas Carigali for duration of 3 years.
Operations are expected to commence mid-2014, in support of Petronas Carigali’s drilling campaign.
The group expects the contract to “contribute positively to the group’s financial position”. The value of the contract was not stated.
Yee Lee Corporation Bhd’s net profit rose 9.5% year-on-year (y-o-y) to RM9.1 million in the first quarter ended Mar 31, 2014, from RM8.4 million a year ago.
Revenue also increased 7.8% y-o-y to RM173.0 million, from RM160.4 million.
The manufacturer and distributor of fast moving consumer goods said the higher profit came from its plantation division, despite lower profit contributed from its manufacturing and trading divisions.
Yee Lee said the larger revenue was due to larger revenue from its manufacturing and trading divisions.
Additionally, the firm said profit contribution from its associated company, Spritzer Bhd had increased substantially by 73.6% in this quarter.
MPHB Capital Bhd has cancelled its proposed final dividend of five sen a share for financial year ended December 31, 2013, after this plan failed to get Bank Negara Malaysia's approval.
Eco World Development Bhd announced that property man Tan Sri Liew Kee Sin has emerged as a substantial shareholder in Eco World with an indirect interest of 35.05%.
The property developer told the exchange today that Kee Sin, newly appointed director of Eco World, owns the stake comprising 88.8 milion shares through his son's Tian Xiong's direct interest in the firm.