KUALA LUMPUR (Nov 17): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, Nov 18) could include the following: DeGem, Daibochi, Wing Tai, JAKS Resources, Hong Leong Financial Group, Hong Leong Bank, Matrix Concepts, Heng Huat, Dialog, Kumpulan Europlus, Magna Prima, HeveaBoard, Box-Pack, Bina Darulaman and Dutch Lady.
Slower consumer spending and unfavourable foreign exchange (forex) rates have caused jewellery manufacturer DeGem Bhd's net profit to plunge 96% in its third quarter ended Sept 30, 2015 (3QFY15) to RM127,000 from RM3.52 million a year ago.
Sales fell 28.83% to RM40.88 million from 3QFY14's RM57.43 million, "due to weaker consumer spending after the implementation of the GST in April 2015", its filing to Bursa Malaysia today showed.
For the cumulative nine-month period (9MFY15), DeGem's net profit came to RM7.16 million, down 42.85% from last year's RM12.52 million.
Its bottom line was crimped by lower sales, higher operation costs and forex differences.
DeGem's 9MFY15 sales was RM139.52 million, 11.92% lower than RM158.4 million a year ago.
Daibochi Plastic and Packaging Industry Bhd reported a 34.71% increase in profit to RM6.76 million for its third quarter ended Sept 30, 2015 (3QFY15) due to favourable product mix, higher turnover, forex gain as well as improved margin on higher export sales due to the weaker ringgit against other foreign currencies.
Revenue rose by 3.51% to RM86.01 million from RM83.09 million mainly due to an increase of 8% in export sales volume and the stronger US dollar.
However, local revenue declined by 9% due to weaker demand in the domestic market from multinational company (MNC) and non-MNC customers when compared to last year.
The packaging manufacturer is proposing a 3.5 sen dividend per share compared to 2.5 sen last year.
For the cumulative nine-month period (9MFY15), Daibochi recorded a 12.88% increase in profit to RM20.13 million from RM17.84 million last year while revenue rose marginally by 0.53% to RM261.84 million from RM260.46 million.
Wing Tai Malaysia Bhd saw its net profit for the first financial quarter ended Sept 30, 2015 (1QFY16) plunge 91.9% to RM2.54 million from RM31.23 million, due to lower operating profit from the property development division and the recognition of a net gain of RM20.2 million from the disposal of shares in its joint venture (JV) in Indonesia in 1QFY15.
Its 1QFY16 revenue also fell 10.5% to RM74.28 million from RM83.03 million a year ago.
Wing Tai declared a first and final dividend of 3 sen per share for the financial year ending June 30, 2016 (FY16).
Its Bursa filing said the property development division's operating profit dropped 11.8% to RM2 million in 1QFY16 compared with RM8.5 million last year.
The operating profit of the retail division rose 12.5% to RM5.6 million compared with RM4.9 million a year ago.
Wing Tai noted the group recorded a share of loss from JVs of RM300,000 in 1QFY16 compared with a share of profit of RM3.4 million in 1QFY15 due to the weakened ringgit, 6% absorption of GST with minimal price increase and pre-operational expenses for upcoming stores to be opened next quarter.
JAKS Resources Bhd more than doubled (113%) its net profit to RM5.91 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM2.78 million in 3QFY14, due to its construction orderbook and billings from property development.
It also had a 21% jump in revenue to RM114.15 million, from RM93.78 million last year, its Bursa filing showed.
Strong performance for the quarter was contributed by revenue from its property development division (RM47.4 million) and construction division (RM45.9 million) with its trading division generating RM20.8 million in revenue.
For the nine-month period ended Sept 30 (9MFY15), net profit soared 73% to RM12.25 million, from RM7.06 million last year while revenue inched up 4% to RM314.25 million, from RM301.77 million.
Hong Leong Financial Group Bhd (HLFG) posted a 1.3% drop in net profit for the first financial quarter ended Sept 30, 2015 (1QFY16) to RM386.88 million from RM392.16 million a year ago, mainly due to lower contribution from its banking and investment banking division.
Revenue, however, rose 5.8% to RM1.15 billion from RM1.08 billion.
HLFG declared a first interim dividend of 13 sen per share for the financial year ending June 30, 2016 (FY16), payable on Dec 23.
During the quarter, its commercial banking division registered lower earnings with Hong Leong Bank Bhd's pre-tax profit falling 11.2% year-on-year (y-o-y) at RM625 million due to lower net interest income, higher allowance for loan impairment allowances and higher operating expenses.
This was offset by higher pre-tax profits by its insurance division HLA Holdings Sdn Bhd, which rose 81.1% y-o-y to RM73.7 million in 1QFY16 due to lower actuarial reserves arising from higher interest rates.
The group's book value per share increased to RM13.15 as at Sept 30 from RM12.48 as at June 30.
Matrix Concepts Holdings Bhd's net profit dropped 31.1% to RM31.08 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM45.09 million a year ago, due to lower revenue recognition from the sales of properties.
The property developer's revenue also fell 18.4% to RM121.37 million in 3QFY15 from RM148.82 million in 3QFY14.
It declared a third interim dividend of 3.5 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Jan 8, 2016.
For the nine-month period (9MFY15), Matrix Concepts' net profit was 39.9% higher at RM176.38 million or 36.5 sen a share from RM126.09 million or 36.5 sen a share in 9MFY14.
Earnings per share was the same as the group had enlarged its share base via a one-for-six bonus issue earlier in July.
Revenue for 9MFY15, meanwhile, rose 25.1% to RM559.41 million from RM447.26 million in 9MFY14.
Heng Huat Resources Bhd highlighted its proposed transfer of the listing of its shares from the ACE Market to the Main Market of the bourse, announced on May 11, in its response to an unusual market activity query by Bursa earlier today.
Kenanga Investment Bank Bhd had on Sept 2 announced on behalf of Heng Huat's board that the application for the proposed transfer has been submitted to the Securities Commission Malaysia (SC) on the date for consideration.
It is still pending the consideration of SC.
Dialog Group Bhd's first quarter net profit climbed 20.4% y-o-y, driven by its international business which offsets lower earnings from its Malaysian operations.
Net profit increased to RM60.07 million in the three months ended Sept 30, 2015 (1QFY16) from RM49.91 million a year ago, due to higher fabrication activities in New Zealand and better margins on sales of specialist products and services, which are mostly denominated in US dollar.
Revenue was slightly lower at RM536.37 million from RM541.55 million in 1QFY15, on lower revenue from its international operation.
Revenue from its Malaysian operation for 1QFY16 was higher, contributed by the engineering and construction activities from ongoing projects, said Dialog in a Bursa filing today.
Kumpulan Europlus Bhd's net profit soared 82% to RM15.19 million for the second quarter ended Sept 30, 2015 (2QFY15) from RM8.34 million a year ago due to higher interest and distribution income, besides lower interest expense.
Revenue rose 22-fold to RM60.18 million from RM2.67 million a year earlier, primarily because of better construction contribution.
For the half-year period to Sept 30 (1HFY15), net profit dropped 46% to RM25.91 million from RM47.68 million in 1HFY14, even as revenue soared over 40 times to RM224.13 million from RM5.28 million.
This is primarily because of higher cost of sales (1HFY15's RM221.63 million vs 1HFY14's RM4.44 million) and lower other income (1HFY15's RM14.57 million vs 1HFY14's RM45.73 million).
Magna Prima Bhd continues its strong performance this year by chalking a net profit of RM85.35 million in its third quarter ended Sept 30, 2015 (3QFY15), due to improvements in its property development segment.
This was mostly due to the completion and sale of six blocks of shop office at Jalan Kuching Commercial Centre and The Istana project in Melbourne, Australia, its filing to Bursa showed.
After slipping into the red in 3QFY14 with a net loss of RM21.07 million, the group, which is principally involved in property development although it is also in construction and civil engineering works and manufacturing of ready-mix concrete, got back into the black in 4QFY14 and has been posting consecutive earnings since.
Its latest quarterly earnings brought its total cumulative nine months' (9MFY15) earnings to RM173.04 million, compared with 9MFY14's RM1.39 million.
Its latest quarterly revenue jumped 425-times to RM248.49 million, from a mere RM668,000 in 3QFY14, bringing its 9MFY15 revenue up fivefold to RM710.7 million from RM140.61 million previously.
HeveaBoard Bhd's profit surged more than twofold to RM18.12 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM5.82 million a year ago, due to better performance in the particleboard sector, resulting from higher sale and sale of higher value and value added products.
The earnings was partly contributed from its ready-to-assemble sector, despite being impacted by an unrealised exchange loss of RM10.23 million, due to the US dollar-denominated term loan in 3QFY15 translation.
Revenue for 3QFY15 grew 29.5% to RM123.83 million, from RM95.66 million in 3QFY14.
It also declared a second interim dividend of 0.5 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Dec 30.
The strong quarterly earnings pushed the group's net profit for the nine-month period (9MFY15) by 123.2% to RM48.13 million from RM21.56 million in 9MFY14.
Meanwhile revenue rose 14.4% to RM351.58 million, from RM307.25 million.
Box-Pak (Malaysia) Bhd's profit halved to RM2.32 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM4.67 million a year ago due to additional depreciation of new machines in Vietnam and loss arising from derivative financial instruments.
This was despite a 27% rise in revenue to RM112.40 million for the quarter, from RM88.68 million last year due to higher revenue from its plants in Vietnam, in line with the strengthening of the Vietnamese dong against the Malaysian ringgit.
For the first three quarters (9MFY15), net profit was 37% higher at RM9.41 million, from RM6.87 million in 9MFY14, while revenue increased 20% to RM306.32 million from RM255.15 million.
Bina Darulaman Bhd's wholly-owned subsidiary BDB Synergy Sdn Bhd was awarded a RM54.802 million contract to build a water treatment plant in Pokok Sena, Kedah.
In its Bursa announcement today, Bina Darulaman said its subsidiary received the letter of acceptance on Nov 15 from the Kedah state government and is expected to complete the project in two years.
Excluding the goods and services tax, BDB Synergy's bid for the contract was RM51.7 million and the project began on Nov 15.
Dutch Lady Milk Industries Bhd's profit for the third financial quarter ended Sept 30, 2015 (3QFY15) surged 74.8% to RM49.95 million from RM28.55 million a year ago, thanks to favourable raw material purchases and positive foreign currency hedging effects.
Its 3QFY15 revenue was 6.3% higher at RM255.58 million from RM240.49 million in 3QFY14, due to the relaunch of the Dutch Lady Children Formula milk, said its Bursa filing.
The group declared a special interim dividend of 60 sen per share for its financial year ending Dec 31, 2015 (FY15), along with a standard interim dividend of 50 sen per share. Both dividends are to be paid on Dec 18.
For its nine months ended Sept 30 (9MFY15), Dutch Lady's net profit rose 52.5% to RM115.76 million from RM75.89 million a year ago although revenue slipped a marginal 0.8% to RM730.76 million from RM736.4 million.
(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.)