KUALA LUMPUR (April 28): Based on corporate announcements and news flow today, companies that in focus on Friday (April 30) may include: Lotte Chemical Titan Holding Bhd (LCT), Petronas Dagangan Bhd (PetDag), Ancom Bhd, Nylex (M) Bhd, AMMB Holdings Bhd, FGV Holdings Bhd, IJM Corp Bhd, Bintai Kinden Corp Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), Pavilion Real Estate Investment Trust (Pavilion REIT), Samchem Holdings Bhd and Gadang Holdings Bhd.
Lotte Chemical Titan Holding Bhd (LCT) posted its highest-ever quarterly profit after tax at RM441.28 million in the first quarter ended March 31, 2021 (1QFY21) versus a loss after tax of RM169.5 million a year earlier, as the petrochemical products manufacturer’s revenue rose due to the increase in average product selling price and sales volume, in tandem with the Covid-19 vaccine-driven global economic recovery. Its revenue climbed to RM2.37 billion from RM1.46 billion a year before.
Petronas Dagangan Bhd (PetDag) remains cautious about the outlook of its retail segment business for the year, as interstate travel is still limited due to the rising Covid-19 cases in the country, said its chairman Datuk Md Arif Mahmood.
However, the group witnessed a slight recovery in the retail segment in March this year and remains upbeat about the prospect of resumption in economic activities, including interstate travel in the second half of the year.
"We have also expanded outside the physical presence of our gas stations. We have new offerings on Shopee, especially our lubricants, T-shirts and merchandise,” he added.
Meanwhile, the group has pushed the target to secure 30% of its earnings before interest, taxes, depreciation, and amortisation (EBITDA) from non-fuel income to 2025, from late-2021 previously.
Ancom Bhd has proposed to acquire all assets and liabilities of Nylex (Malaysia) Bhd for RM179.3 million, confirming a report by theedgemarkets.com this morning.
"As Ancom currently holds approximately 50.3% in Nylex, this will be set off against its entitlement under the proposed distribution. Accordingly, the net consideration for the proposed acquisition payable by Ancom will be RM96.7 million (net purchase consideration), which is for the remaining 49.7% stake it does not currently own,” it stated.
The net purchase consideration shall be satisfied via payment of RM50 million in cash, with the balance RM46.7 million fulfilled through issuance of 31.1 million new Ancom shares at an issue price of RM1.50 per share.
AMMB Holdings Bhd (AmBank), which announced an RM2.83 billion settlement with the Malaysian government earlier this year over its role in the 1Malaysia Development Bhd (1MDB) fiasco, said it will be booking a one-off impairment charge of RM1.79 billion in its conventional and investment banking businesses for the fourth quarter ended March 31, 2021.
The banking group will also be recording an RM148 million impairment on the carrying investment in an associate (REIT impairment) in its 4QFY21. These non-cash items will have no impact on its regulatory capital ratios and do not impact future earnings.
But these impairments, combined with its 1MDB settlement with the Ministry of Finance (MoF), will result in the banking group posting a net loss for its FY21, it said.
Previously, AmBank said net profit for the nine months ended Dec 31, 2021 declined to RM866.32 million from RM1.09 billion a year earlier, while revenue was lower at RM6.44 billion versus RM7.11 billion.
FGV Holdings Bhd expects 2021 to be another challenging year, no thanks to its labour shortages and the volatility of crude palm oil (CPO) prices that affect the company’s plantation business, which contributes 82% to the group’s revenue.
The group, however, expects its sugar business to continue improving its operating and financial performance.
“In 2021, our focus will be on new value creation for our downstream business. This is integral to our vision to reposition FGV as a leading agribusiness player. So far, we are on track with the implementation of our strategies and action plans to realise this aspiration,” its outgoing group CEO Datuk Haris Fadzilah Hassan said in FGV’s 2020 annual integrated report released today.
IJM Corp Bhd has secured two contracts with a combined value of RM327.6 million. These comprise a RM89.8 million contract to construct the building infrastructure and public realm works in Tun Razak Exchange (TRX), Kuala Lumpur; and a RM237.8 million contract for the construction of the Mezzo residential tower in The Light City, Penang.
The group got an RM89.8 million contract to construct the building infrastructure and public realm works in Tun Razak Exchange (TRX), Kuala Lumpur. In addition, it was also granted an RM237.8 million contract for the construction of the Mezzo residential tower in The Light City, Penang.
Bintai Kinden Corp Bhd has increased the size of its private placement to partly pay for its acquisition of medical engineering solutions provider Johnson Medical International Sdn Bhd (JMI).
The placement will now comprise 190.95 million shares or 50% of the group's share capital, and seeks to raise RM72.56 million based on an indicative price of 38 sen per share. Previously, it planned to place out 114.57 million shares or 30% of its share capital to raise RM58.43 million.
Under the revised shares placement, it said RM26 million of the total proceeds will be used to partly pay for the JMI purchase. Another RM25 million will be used for its Holistica Development project in Penang, while RM10.06 million will be set aside for working capital requirements.
Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) posted a net loss of RM104.35 million for the first quarter ended March 31, 2021 (1QFY21) versus RM6.13 million net profit a year ago, dragged by operating losses recorded by both its marine and heavy engineering segments. Quarterly revenue dipped to RM343.57 million from RM346.44 million.
Pavilion Real Estate Investment Trust (Pavilion REIT) said its net property income (NPI) fell 9.63% to RM58.85 million for the first quarter ended March 31, 2021 (1QFY21) from RM65.12 million a year ago, due to lower occupancy rates in its shopping malls amid the pandemic. Revenue slipped 6.03% to RM126.21 million, from RM134.32 million in 1QFY20, due to the lower occupancy rates because of non-renewal of some expired tenancies. The REIT did not declare any distribution for the first quarter.
Samchem Holdings Bhd’s net profit grew by multiple folds to RM18.95 million for the first quarter ended March 31, 2021 (1QFY21) from RM4.33 million a year ago, thanks to an increase in sales volume and average selling price. The better performance was also due to improved profit margin and a reduction in finance costs. Revenue also increased 28% to RM330.7 million from RM258.43 million a year ago. It has declared a first interim dividend of one sen per share.
Gadang Holdings Bhd’s net profit for the third quarter ended Feb 28, 2021 (3QFY21) slid 10.4% to RM2.84 million from RM3.16 million seen in 2QFY21, due to lower revenue recorded. Its revenue fell 17.37% quarter-on-quarter (q-o-q) to RM138.91 million from RM168.12 million, dragged mainly by lower construction activities and lower work progress for its property development projects.
For the cumulative nine months ended Feb 28, its net profit plunged 82% year-on-year (y-o-y) to RM6.55 million from RM35.72 million, while cumulative revenue fell 24.22% y-o-y to RM422.42 million from RM557.46 million. On prospects, it anticipates its current financial year's performance to be lower, due to challenging and depressed market conditions.