Econpile, Icon Offshore, Parkson, WCT, SunCon, IJM Corp, IJM Plantations, Brahim's, Kim Teck Cheong and UMW-OG

Econpile, Icon Offshore, Parkson, WCT, SunCon, IJM Corp, IJM Plantations, Brahim's, Kim Teck Cheong and UMW-OG
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KUALA LUMPUR (Nov 24): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Wednesday, Nov 25) could include the following: Econpile, Icon Offshore, Parkson, WCT, SunCon, IJM Corp, IJM Plantations, Brahim's, Kim Teck Cheong and UMW-OG.

Econpile Holdings Bhd has secured a RM95.5 million contract for piling and related works for the Arte Mont Kiara mixed development in Mont Kiara here, bringing the group's total order book to RM630 million, which will be recognised till 2017.

In a statement today, the piling and foundation specialist said its subsidiary Econpile (M) Sdn Bhd has been contracted by Nusmetro Property Sdn Bhd to undertake earthworks, piling and basement construction works for the project.

Econpile executive director and group chief executive officer Raymond Pang said works for Arte Mont Kiara are expected to commence in early December 2015.

"The duration of the contract is 19 months and slated to be completed by June 2017. Hence, this contract is expected to contribute positively to the group's financial performance for the financial years ending June 30, 2016 and 2017," he said in the statement.

Oil and gas services provider Icon Offshore Bhd will supply a deepwater platform supply vessel to Borneo Seaoffshore Sdn Bhd as part of a two-year contract, with a one-year extension option, valued at RM51 million.

The group said the supply of the vessel was to support the production operations and well services activities of Kebabangan Petroleum Operating Co.

For its third quarter ended Sept 30, 2015 (3QFY15), Icon Offshore reported a 70.8% decrease in net profit at RM5.53 million or 0.5 sen per share from RM18.95 million or 3.3 sen a year ago, on higher cost of sales.

Revenue fell 13.4% to RM69.05 million from RM79.7 million last year.

For the nine-month period (9MFY15), its net profit fell to RM14.6 million from RM71.4 million in 9MFY14, while revenue fell 16.8% to RM201.2 million from RM241.8 million last year.

Icon Offshore executive director Datuk Abdul Rahman Ahmad said the group's fundamentals remain strong and with its new incoming leadership, both the board and management team remain convinced that it is in a strong position to take advantage of the opportunity offered when the industry environment turns positive.

Apart from Brunei, it is looking to expand into international markets including Myanmar, Vietnam and India, he added.

Department-store operator Parkson Holdings Bhd saw its net profit triple to RM63.29 million or 5.8 sen per share for the first financial quarter ended Sept 30, 2015 (1QFY16), from RM20.22 million or 1.9 sen per share a year ago, after accounting for the gain on partial disposal of a former subsidiary amounting to RM136 million.

Quarterly revenue rose 10% to RM933.39 million from RM848.62 million in 1QFY15, driven by strong consumer spending during the Hari Raya festive season in Malaysia and Indonesia.

Parkson told Bursa Malaysia that its Malaysian operations reported a negative same store sales (SSS) growth of 15% for 1QFY16 due to weak consumer sentiments, following the implementation of the goods and services tax and the weakening in the local currency.

Its overseas operation in China and Vietnam reported a negative SSS growth of 10% and 4% respectively in the quarter under review, due to weak consumer sentiments and intensifying competition.

Parkson's Myanmar operation has yet to achieve break-even sales volume, despite recording SSS growth of 6% for the quarter under review, while its Indonesian business reported a strong SSS growth of 10% for 1QFY16, riding on the growing middle-class and young population.

Moving forward, Parkson anticipates its performance to improve in 2QFY16, in view of the coming year-end festivities and holiday seasons.

WCT Holdings Bhd's net profit tripled to RM85.91 million or 7.43 sen per share for the third quarter ended Sept 30, 2015 (3QFY15) from RM25.85 million or 2.31 sen per share a year ago, mainly driven by favourable foreign exchange (forex) gain.

Revenue for the quarter was 21.1% lower at RM371.8 million from RM471.11 million in 3QFY14.

For the cumulative nine-month period (9MFY15), WCT's net profit jumped 49.82% to RM150.18 million or 13.39 sen per share from RM100.24 million or 8.95 sen per share in 9MFY14.

Revenue, however, fell 14.3% to RM1.14 billion from RM1.34 billion in 9MFY14.

Going forward, WCT said that with the impending implementation of the 11th Malaysia Plan and roll out of mega infrastructure projects, the group is cautiously optimistic about achieving satisfactory results for the financial year ending Dec 31, 2015.

Sunway Construction Group Bhd (SunCon) recorded a net profit of RM25.66 million or 1.98 sen a share in its third quarter ended Sept 30, 2015 (3QFY15), mainly contributed by its ongoing local construction projects and supplies of precast concrete products to projects in Singapore.

Revenue for the quarter stood at RM450.29 million, it told Bursa in a filing today, adding that its construction segment reported a revenue of RM394 million and pre-tax profit of RM9.6 million in the current quarter.

The precast segment, meanwhile, reported a revenue of RM56.3 million and pre-tax profit of RM20.5 million in 3QFY15.

For the nine-month period (9MFY15), SunCon posted a net profit of RM97.82 million or 7.57 sen per share on revenue of RM1.45 billion.

With an outstanding order book of RM4.3 billion, the group is confident it will be able to deliver a satisfactory performance for the financial year ending Dec 31, 2015.

IJM Corp Bhd saw its net profit climb 40% to RM156.38 million or 4.38 sen per share for the second financial quarter ended Sept 30, 2015 (2QFY16) from RM111.49 million or 3.42 sen per share a year ago, underpinned by lower income tax expense and currency translation differences of RM127.59 million.

Quarterly revenue gained 4% to RM1.34 billion from RM1.29 billion in 2QFY15 due to better contribution from its construction, industry and infrastructure divisions.

IJM Corp also declared a first interim dividend of three sen per share for the financial year ending June 30, 2016 (FY16), payable on Dec 23.

For the six months ended Sept 30, 2015 (1HFY16), the group's net profit doubled to RM493.25 million from RM244.87 million in 1HFY15, while revenue fell 5% to RM2.52 billion from RM2.67 billion a year ago.

Meanwhile, IJM Plantations Bhd sank into the red in 2QFY16, with a net loss of RM4.9 million or 0.56 sen per share compared with a net profit of RM27.10 million or 3.29 sen per share in 2QFY15, dragged down by unrealised forex losses of RM45.98 million arising from its US dollar-denominated borrowings.

Revenue for the quarter fell 16% to RM145.14 million versus RM173.73 million in 2QFY15.

For the six-month period (1HFY16), IJM Plantations posted a 66% drop in net profit to RM17.92 million from RM53.22 million in 1HFY15, while revenue declined 18% to RM286.88 million from RM351.50 million in 1HFY15.

Going forward, the group expects a satisfactory performance, driven by its construction, industry and infrastructure divisions.

In-flight catering company Brahim's Holdings Bhd reported a second consecutive quarterly loss today with a net loss of RM8.63 million or 3.65 sen per share for its third quarter ended Sept 30 (3QFY15).

This was due to continued concessions given to Malaysian Airline System Bhd (MAS) under the settlement agreement dated Feb 26, it told Bursa in a filing today.

It posted a net profit of RM1.01 million or 0.43 sen per share in 3QFY14. Brahim's first sunk into the red in 2QFY15, when it posted a net loss of RM6.91 million.

Its revenue for 3QFY15 also fell 27.7% to RM64.88 million from RM89.69 million due to lower turnover registered across all its business segments.

For the cumulative nine-month period (9MFY15), it posted a net loss of RM12.61 million or 5.33 sen per share compared with a net profit of RM6.73 million or 2.88 sen per share in 9MFY14.

Revenue for the period came in 20.7% lower at RM217.69 million from RM274.5 million a year ago.

Kim Teck Cheong Consolidated Bhd will be making its debut on the ACE Market of Bursa tomorrow.

The Sabah-based consumer packaged goods manufacturer and distributor is seeking to raise RM21.3 million in its initial public offering.

A total of RM14 million of the proceeds will be used to expand its warehousing facilities, warehousing construction and equipment purchase, while the rest will be for working capital and listing expenses.

UMW Oil & Gas Corp Bhd (UMW-OG) saw its net profit plunge 99.7% to RM218,000 or 0.01 sen a share for the third quarter ended Sept 30, 2015 (3QFY15) from RM66.06 million or 3.06 sen a share a year ago, on lower profit from its oilfield services segment coupled with losses registered by the drilling services segment.

In a filing with Bursa today, UMW-OG said this profit shortfall was, however, partly mitigated by forex gains from the favourable US dollar exchange rate on cash reserve denominated in US dollars held by the company.

Revenue for 3QFY15 also fell by 16.4% to RM212.7 million from RM254.32 million in 3QFY14, due to lower revenue contributions from both the drilling services segment and the oilfield services segment. Overseas operations contributed 51.5% of the group's revenue in 3QFY15.

For the nine-month period (9MFY15), UMW-OG reported a net profit of RM36.82 million or 1.7 sen per share, 79.6% lower than its 9MFY14 net profit of RM180.05 million or 8.33 sen a share.

Revenue for 9MFY15, however, rose 2.9% to RM708.57 million, from RM688.67 million a year ago, on additional revenue generated by new assets.

On prospects, UMW-OG said profitability of the oilfield services segment is likely to remain flat in the fourth quarter of 2015.

The group's overall financial performance is also expected to be challenging for the financial year ending Dec 31, 2015, it added.

(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.)