KUALA LUMPUR (Nov 23): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Tuesday, Nov 24) could include the following: AmBank Group, PetChem, Eversendai, SunCon, Inix, UWM-OG, Ni Hsin, Multi Sports, Kretam, Lion Corp, C.I. Holdings, JCY, Oriental Interest, Zelan, TDM, Malakoff, Pos Malaysia and I-Bhd.
AMMB Holdings Bhd (AmBank Group) has agreed to pay a penalty of RM53.7 million to Bank Negara Malaysia (BNM) with respect to non-compliance with certain regulations by AmBank (M) Bhd and AmBank Islamic Bhd.
In a filing with Bursa Malaysia today, the bank announced that it, as a group, has agreed to pay the penalty, which pertains to action pursuant to section 234 of the Financial Services Act 2013 and section 245 of the Islamic Financial Services Act 2013, to the central bank.
The sections are in relation to the administrative actions that banks can take in the event a breach was committed under the respective acts. The banking group, however, did not reveal details of its non-compliance.
"AmBank Group commenced its own review and has been cooperating with BNM with regard to this matter, including providing information to BNM. This review has led to the strengthening of our governance structure and is ongoing," it said.
The bank added that the penalty has no material impact on AmBank Group's earnings for the financial year 2016.
Petronas Chemicals Group Bhd (PetChem) has awarded a polypropylene plant construction contract to a consortium comprising Italy-based Tecnimont and China-headquartered Huanqiu Contracting & Eng Corp valued at US$482 million (RM2.07 billion).
The chemical products manufacturer told the exchange today that Tecnimont and Huanqiu won the project on a "competitive bidding" basis.
According to PetChem, the engineering, procurement, construction and commissioning contract involved a 900,000 tonne-a-year plant within the refinery and petrochemical integrated development (RAPID) in Pengerang, Johor.
It added that the contract, which starts today, is due for completion on April 15, 2019.
Eversendai Corp Bhd has secured a string of new engineering and construction contracts both foreign and domestic worth RM316 million, through its subsidiary companies in Qatar, India and Malaysia, bringing its year-to-date winning to RM1.5 billion.
Without disclosing the value for each individual contract, the engineering and construction services specialist told the exchange that the contracts include the structural steel roof construction of a theme park at the Doha Oasis Mixed Use Development in Qatar and a structural steel works of the Statue of Unity in Gujarat, India.
On the local front, the group has clinched three contracts for two separate packages at the Petronas RAPID project in Pengerang, Johor.
The first contract consists of the fabrication and supply of structural steel for a refinery package and is expected to be completed by September 2016, it said, while the other two contracts are for a steam cracker complex, of which the group targeted to complete the works for in December 2016 and August 2018.
Eversendai said it will continue to aggressively pursue a substantial number of commercial and infrastructure projects in the Middle East, India and Malaysia.
Sunway Construction Group Bhd (SunCon) has clinched a RM106.75 million contract from a joint venture (JV) between KLCC (Holdings) Sdn Bhd and QD Asia Pasific Ltd to undertake substructure works and associated works for a proposed mixed commercial development in the Kuala Lumpur City Centre.
SunCon told Bursa that its subsidiary Sunway Construction Sdn Bhd has accepted a letter of award (LoA) from Cititower Sdn Bhd for the proposed project.
The LoA is in conjunction with the Package 2 contract for the construction and completion of piling, substructure works and associated works for the proposed mixed commercial development for Lot 185 and Lot 167(K) at Persiaran KLCC, it said.
"The date of completion for the whole project shall be on Dec 28, 2017. The project is expected to contribute positively to the earnings of SunCon Group from the financial year ending Dec 31, 2016 onwards," said SunCon.
Inix Technologies Holdings Bhd, which is in the midst of acquiring a 30% equity interest in Galactic Maritime (M) Sdn Bhd, said Galactic has bagged a RM34.5 million contract to supply three vessels for dredging and land reclamation services for a project in Penang.
In a filing with Bursa today, Inix said Galactic has signed an agreement with Alam Seada Sdn Bhd for the contract, which is based on a total estimated 3 million cubic meter of sand to be transported.
Inix had on March 16 proposed to acquire 30% equity interest or 4.05 million shares in Galactic for RM7.2 million cash, which is expected to be completed by the end of this month.
UMW Oil & Gas Corp Bhd (UMW-OG) has clinched a contract from SapuraKencana Petroleum Bhd to provide a jack-up drilling rig and associated services for an undisclosed amount.
UMW-OG told stock exchange that its wholly-owned subsidiary UMW Offshore Drilling Sdn Bhd has received a LoA from SapuraKencana Energy Peninsula Malaysia Inc, SapuraKencana Energy Sarawak Inc and SapuraKencana Energy Sabah Inc for the contract.
UMW-OG has assigned its latest rig UMW NAGA 8 for this contract, which is for up to 18 wells with an extension option for three additional wells. The contract commenced on Sept 28.
Ni Hsin Resources Bhd has tied up with National Cooperative Bhd's (Angkasa) unit MyAngkasa Holdings Sdn Bhd (MHSB) to market and distribute multi-ply stainless steel cookware under a new brand named "PENTOLI".
The stainless steel cookware manufacturer told the exchange today that it has penned a shareholders agreement with MHSB to form a JV company named MyAngkasa Ni Hsin Sdn Bhd, in which it will hold a 70% stake while the remaining 30% will be held by MHSB.
Under the shareholder agreement, Ni Hsin will be responsible for managing the business operations, as well as to manufacture and supply premium multi-ply stainless steel cookware and related products to the new company. While MHSB shall make available, or procure Angkasa to make available, its customer network for the marketing and distribution of the new company's products.
Sport shoes sole maker Multi Sports Holdings Ltd sank into the red for the second consecutive quarter, no thanks to the sluggish consumer sentiments arising from headwinds in the global and China's economies, which resulted in lower sale number.
The higher operating costs have also eroded the company's margins for the quarter, it told Bursa in a filing today.
For its third quarter ended Sept 30, 2015 (3QFY15), Multi Sports reported a net loss of RM9.79 million or 1.89 sen per share compared to a net profit of RM7.75 million or 1.5 sen per share a year ago. In the immediate preceding quarter (2QFY15), Multi Sports recorded a net loss of RM6.09 million.
Revenue came in 23.5% higher at RM123.24 million from RM99.78 million in the previous year.
For the cumulative half-year period (1HFY15), Multi Sports registered a net loss of RM9.72 million, compared to a net profit of RM27.10 million in 1HFY14; while revenue climbed 7% to RM301.84 million from RM281.64 million a year ago.
Kretam Holdings Bhd posted a net loss of RM8.08 million or 0.43 sen per share for the third quarter ended Sept 30, 2015 (3QFY15), compared with a net profit of RM1.57 million or 0.08 sen per share in the same quarter last year, largely on rising costs, and falling earnings in its plantation and mill operations due to lower crude palm oil (CPO) prices.
Notably, its cost of sales and services for the latest quarter rose 16.44% to RM101.19 million versus RM86.9 million in 3QFY14, while its "other expenses" grew over 45 times to RM7.87 million, from a mere RM172,000 previously, its filing to Bursa today showed.
Meanwhile, revenue gained 6.9% to RM111.81 million, from RM104.6 million in 3QFY14.
For the cumulative nine-month period (9MFY15), Kretam posted a net loss of RM13.24 million or 0.71 sen per share, compared to a net profit of RM8.64 million or 0.47 sen per share in 9MFY14.
Revenue for the period was down 0.3% at RM289.3 million versus RM290.15 million in 9MFY14.
Steel manufacturer Lion Corp Bhd's net losses doubled to RM176 million or 13.35 sen in the first quarter ended Sept 30, 2015 (1QFY15) from RM85.93 million or 6.53 sen per share a year ago as revenue shrunk, and foreign exchange (forex) losses came in higher.
Revenue for the quarter shrunk 43.7% to RM340.6 million, from RM605.3 million in the same quarter last year, as its performance continued to be affected by foreign steel producers' dumping activities, as the measures imposed by the authorities are generally seen as ineffective.
Lion Corp expects the operating environment to remain tough in the coming quarter, if no effective measures are undertaken by the government to curb dumping activities, which would cause local steel producers to continue to suffer.
However, it said, the announcement by the government in September 2015 on the safeguard investigation augurs well for the group.
C.I. Holdings Bhd saw its net profit for the first financial quarter ended Sept 30, 2015 (1QFY16) jump 12 times to RM10.07 million or 6.21 sen per share from a year ago, due to the consolidation of the results of its 60%-owned subsidiary, Palmtop Vegeoil Products Sdn Bhd.
The group posted a profit of RM846,000 or 0.52 sen per share in the corresponding quarter last year, its filing to Bursa today showed.
For the same reason, revenue surged to RM260.09 million from RM87.54 million in 1QFY15.
JCY International Bhd's net profit in its fourth quarter ended Sept 30, 2015 (4QFY15) surged a little over 4.5 times to RM75.6 million or 3.7 sen per share compared to RM16.5 million or 0.81 sen per share in the same quarter last year, driven by a stronger US dollar against the ringgit.
Revenue inched up 0.75% to RM465.9 million in 4QFY15 compared to RM462.4 million last year due to lower sales volume.
It declared a fourth interim dividend of three sen per share, bringing its full year's dividend to 6.75 sen versus 4.25 sen in FY14.
Net profit for FY15 came in 91% higher at RM209.5 million from RM109.9 million in FY14. Revenue improved by 4.02% to RM1.94 billion compared with RM1.87 billion in FY14.
Oriental Interest Bhd's net profit for the first quarter ended Sept 30, 2015 (1QFY16) more than tripled to RM9.75 million or 10.77 sen per share from RM2.59 million or 2.86 sen per share driven by its property development and general construction segment.
The improvement in performance was mainly contributed by a surge of 109% and 353% in progress billings and pre-tax profit respectively from property development, with much improved project margin, it said.
A hike of 79% and 88% in total billings and pre-tax profit respectively from general construction has also lifted its earnings for the quarter.
Revenue almost doubled to RM67.13 million from RM34.13 million in 1QFY15.
Zelan Bhd registered a 75.9% increase in net profit for the third quarter ended Sept 30, 2015 (3QFY15) to RM23.45 million from RM13.33 million a year ago, largely due to a RM26 million provision write-back and a RM15.9 million tax refund.
The write-back was on its provision for late payment interest charge on tax in Indonesia, while the tax refund was on tax paid in Indonesia. Also contributing to the better results was a RM1.8 million tax refund from India, and higher unrealised forex gain of RM10.3 million, its filing on Bursa today showed.
Revenue for the quarter rose 49.1% to RM94.03 million from RM63.1 million in 3QFY14, contributed mostly by local projects as well as the Meena project in Abu Dhabi.
For the nine-month period (9MFY15), net profit rose 34.08% y-o-y to RM49.02 million while revenue rose 48.4% to RM297.13 million.
Despite lower CPO prices and weaker hospital profit, TDM Bhd saw its net profit for the third financial quarter ended Sept 30, 2015 (3QFY15) surge 59% to RM12.05 million or 0.81 sen per share from RM7.6 million or 0.51 sen per share a year earlier on deferred taxes.
In a filing with Bursa today, the plantation and healthcare player said its revenue inched up 0.3% to RM98.57 million versus RM98.31 million in 3QFY14.
During 3QFY15, TDM registered deferred tax of RM342,000 versus tax expenses of RM6.42 million.
For the nine-month period (9MFY15), net profit halved to RM17.52 million from RM36.81 million a year earlier. Revenue fell 6.35% to RM268.27 million from RM286.47 million a year ago.
Malakoff Corp Bhd's net profit jumped 44.3% to RM156.02 million or 3.12 sen per share for the third quarter ended Sept 30, 2015 (3QFY15), from RM108.13 million or 3.02 sen per share a year ago, thanks to lower losses recorded by its associate company Kapar Energy Ventures Sdn Bhd and lower finance costs, following the redemption of its sukuk from its initial public offering (IPO) proceeds.
Revenue for 3QFY15 fell 9.2% to RM1.28 billion, from RM1.41 billion a year ago on lower capacity factor registered by its gas-fired and coal-fired power plants and the scheduled outages taken by certain plants, as part of its maintenance requirement.
The independent water and power producing company recommended an interim dividend of two sen, totalling RM100 million for the financial year ending Dec 31, 2015 (FY15), payable on Dec 28.
For the nine-month period (9MFY15), Malakoff's net profit gained 51.7% to RM346.21 million or 7.91 sen per share, from RM228.86 million or 6.39 sen per share in 9MFY14.
Revenue slid 4.4% to RM3.93 billion, from RM4.11 billion a year earlier.
Pos Malaysia Bhd saw its net profit plunge 89.8% to RM3.48 million or 0.65 sen per share for its second financial quarter ended Sept 30, 2015 (2QFY16) from RM33.99 million or 6.33 sen per share in 2QFY15.
The national postal company attributed the lower earnings to the lower profits from mail and retail segments, caused by higher transportation cost for transhipment business and recognition of expired postal order in 2QFY15.
However, revenue came in 7.3% higher at RM398.8 million from RM371.67 million a year ago, underpinned by its mail and retail segments, which registered an increase in turnover of 11% and 15.3% respectively during the quarter.
For the first half of FY16 (1HFY16), Pos Malaysia posted a 57.1% decline in net profit to RM26.22 million or 4.88 sen per share from RM61.1 million or 11.38 sen per share a year ago due to the same reasons.
Revenue for 1HFY16 gained 6.6% to RM789.17 million from RM740.46 million in 1HFY15.
Going forward, Pos Malaysia said its revenue growth will be mainly driven by the growth in products and services related to e-commerce, namely courier, small packets and parcels products.
Although the e-commerce growth trend is expected to have long-term potential, it pointed out that the softening near-term economic and market sentiments are expected to be challenging for the group's prospects.
Property developer and theme park operator I-Bhd saw its net profit for the third quarter ended Sept 30, 2015 (3QFY15) fall 39.9% to RM8.56 million, from RM14.24 million a year earlier, as revenue dropped 28.65% to RM55.22 million, compared with RM77.39 million a year ago.
It told Bursa that its property development segment — the group's biggest revenue contributor — recorded lower sales and pre-tax profit because its ongoing developments were at their initial stages of construction.
For the cumulative nine months (9MFY15), net profit fell 31.29% to RM27.31 million from last year's RM39.75 million.
Going forward, I-Bhd expects its property development and leisure segments to continue contributing positively to its financials in FY15.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)