KUALA LUMPUR (May 22): Based on corporate announcements and news flow today, companies that may be in focus next Wednesday (May 27) include: CIMB Group Holdings Bhd, DeGem Bhd, Hengyuan Refining Company Bhd, Genting Malaysia Bhd (GenM), Hong Leong Industries Bhd, Key Alliance Group Bhd, Magnum Bhd, Malaysia Airports Holdings Bhd (MAHB), My E.G Services Bhd (MyEG), FGV Holdings Bhd, MSM Malaysia Holdings Bhd, Public Bank Bhd, Sarawak Oil Palms Bhd, Sime Darby Plantation Bhd, Sunsuria Bhd and Uzma Bhd.
CIMB Group Holdings Bhd’s net profit declined 57.39% to RM507.93 million in its first quarter ended March 31, 2020 (1QFY20) from RM1.19 billion last year, due to lower non-interest income (NOII) and higher provisions across selected markets. This is the lowest net profit since 1QFY15, when it posted RM580.12 million. Quarterly revenue saw a marginal fall, declining to RM4.14 billion from RM4.17 billion.
DeGem Bhd’s shares will be suspended from June 9, until its delisting. As June 8 is a public holiday, the last day for trading of the jewellery manufacturer will be Friday, June 5.
Hengyuan Refining Company Bhd saw a fire break out at 4.20pm at a crude tank located in its Port Dickson refinery. The damage is restricted to the one crude tank affected.
Genting Malaysia Bhd (GenM) will be undertaking a restructuring exercise — inclusive of voluntary pay cuts and workforce rightsizing. The management team has volunteered to have a 20% cut to their salaries. Sources had indicated to theedgemarkets.com that GenM would be retrenching 10% to 20% of its 20,000 strong workforce.
Hong Leong Industries Bhd’s 3QFY20 net profit dropped 36.36% to RM57.53 million from RM90.4 million last year, due to lower volume of goods sold during the movement control order (MCO) period, and a lower share of profits from an associate company. Quarterly revenue fell 11.21% to RM621.89 million, from RM693.53 million. The group proposed a second interim dividend of 25 sen per share, payable on June 25.
Key Alliance Group Bhd plans to import South Korean reverse transcription-polymerase chain reaction (RT PCR) test kits to meet Malaysia’s demand for Covid-19 testing. It’s subsidiary Key Alliance Sdn Bhd has been given full power of attorney and made a local representative of ITDF Co, Ltd, to register, promote, market, sell and distribute Wells Bio Inc’s Care Gene COVID-19 RT PCR Test Kit.
Magnum Bhd's 1QFY20 net profit dropped by RM7.35% to RM55.59 million, from RM60 million last year. Quarterly revenue declined by 19.39% to RM609.54 million from RM756.24 million, following the cancellation of six draws during the MCO until March 31. The group declared a first interim dividend of 2.5 sen per share, payable on June 26.
Malaysia Airports Holdings Bhd (MAHB) posted a net loss of RM20.39 million in 1QFY20, versus a net profit of RM149.58 million. Revenue fell by 25.43% to RM933.84 million from RM1.25 billion, as passenger movements contracted by 23.9% due to travel restrictions enforced to contain the spread of Covid-19.
My E.G Services Bhd (MyEG) saw its e-government services contract over vehicle registration, licensing and summons payment, for another month until June 30. The company also received notification to continue, until further notice, the provision of online renewal of temporary employment pass for foreign workers (PLKS) for the Immigration Department.
The concession agreement for the e-government services — which it first secured in 2000 for a period of 15 years — was extended in 2014 for six years. As for the online renewal of PLKS, the group secured the contract for the job in January 2017.
FGV Holdings Bhd and its listed subsidiary MSM Malaysia Holdings Bhd are expediting their plan to develop a new agricultural growth area, FGV Agro-Food Valley in Chuping, Perlis, on the heels of the cancellation of the deal between MSM and Fraser & Neave Holdings Bhd to sell the former’s sugar plantation in Chuping for RM156 million. FGV and MSM plan to cultivate cassava, MD2 premium pineapple, harum manis mangoes and animal feed production based on cassava by-products of starch and biomass on the land.
Public Bank Bhd saw its 1QFY20 net profit decline by 5.74% to RM1.33 billion, as its net interest income was dragged down after the overnight policy rate was cut to 2.5% during the quarter, despite positive loan growth. Quarterly revenue stayed flat at RM5.52 billion, from RM5.57 billion last year.
Sarawak Oil Palms Bhd saw its 1QFY20 jump eight times to RM71.2 million, from RM8.35 million last year, on a fair value gain on derivatives and higher palm oil product prices. Revenue declined by 30% to RM518.08 million from RM742.07 million, on lower palm product sales volume. The group credited RM37.9 million in fair changes on derivatives, compared to a charge of RM2.45 million previously.
Sime Darby Plantation Bhd’s 1QFY20 net profit rose to RM394 million from RM90 million last year, on higher earnings from both its upstream division and downstream division Sime Darby Oils. Quarterly revenue grew by 2% to RM3.04 billion, from RM2.99 billion. The group also attributed the better results to higher crude palm oil and palm kernel prices.
Sunsuria Bhd’s 2QFY20 net profit plunged 90.15% to RM9.02 million, from RM91.58 million a year earlier, as revenue shrank with the completion of the group’s Jasper Square commercial development at Sunsuria City, Sepang. Quarterly revenue fell by 72.66% to RM68.08 million, from RM249.091 million.
Uzma Bhd’s joint venture has terminated its Tanjong Baram small field risk service contract at the Tanjong Baram marginal oil field with Petronas, as it has reached the contract’s “economic cut-off”. The 30-70 JV with EQ Petroleum Developments Malaysia Sdn Bhd (EnQuest) terminated the contract, with Petronas reimbursing the balance of the reimbursable capital and operational expenditures to Uzma and EnQuest over nine months.