KUALA LUMPUR (May 15): Based on corporate announcements and news flow today, stocks in focus for Thursday (May 16) may include the following: Malaysia Building Society Bhd, Cahya Mata Sarawak Bhd, Sapura Resources Bhd, Dagang Nexchange Bhd, Favelle Favco Bhd, Pentamaster Corp Bhd, Gas Malaysia Bhd, Kuala Lumpur Kepong Bhd, Batu Kawan Bhd and ATTA Global Group Bhd.
Malaysia Building Society Bhd (MBSB) reported a 73.5% net profit fall in its first quarter ended March 31, 2019 (1QFY19) to RM83.83 million from RM316.79 million a year ago, due to higher expected credit losses (ECL). Revenue for 1QFY19 declined 3.8% to RM784.04 million from RM815.04 million a year ago.
Cahya Mata Sarawak Bhd (CMS)'s net profit for the first quarter ended March 31, 2019 (1QFY19) came in at RM40.76 million, up 5% from RM38.98 million in the same quarter a year ago, on the back of stronger performance across its core businesses of cement, construction materials and trading, and property development. Quarterly revenue grew 17.8% to RM418.18 million from RM354.99 million previously.
Sapura Resources Bhd is forming a joint-venture agreement with Rolls-Royce Power Systems AG's (RRPS) unit, MTU Asia Pte Ltd, to sell and service original equipment for the marine, rail, construction, mining, agriculture, oil and gas, and power generation sectors in Malaysia.
Its wholly-owned subsidiary SRB One Sdn Bhd will take up a 51% interest in MTU Power Systems Sdn Bhd (MPS) for RM1.25 million, while MTU Asia will have the remainder, following a Memorandum of Understanding signed between Sapura Resources and MTU Asia on March 26.
Dagang Nexchange Bhd’s (DNeX) unit has been awarded an RM7.49 million contract to supply four new units of marine loading arm (MLA) integrated with relevant systems for Johor Port Bhd’s facilities. The contract was awarded today to DNeX’s wholly-owned subsidiary OGPC Sdn Bhd by Johor Port, and will last 310 days, ending on March 11, 2020.
Units of Favelle Favco Bhd have secured a total of six contracts for the supply of tower cranes, worth a cumulative RM78.3 million. The contracts are expected to be delivered between the second quarter of 2019 and first quarter of 2020.
Pentamaster Corp Bhd’s net profit for its first quarter ended March 31, 2019, jumped 170.7% to RM19.56 million from RM7.23 million a year ago, thanks to greater operating efficiency that led to higher profit margins and net interest income. Quarterly revenue increased 19.5% to RM118.76 million from RM99.38 million previously, due to higher sales from its automated equipment operating segment.
Gas Malaysia Bhd saw its net profit rise 2.4% to RM41.17 million in the first quarter ended March 31, 2019 (1QFY19) from RM40.21 million a year ago, on higher other operating income, share of profit of joint ventures and lower operating expenses. Quarterly revenue also grew 19.5% to RM1.72 billion from RM1.44 billion in 1QFY18.
Kuala Lumpur Kepong Bhd (KLK) reported a 34.7% jump in net profit for its second quarter ended March 31, 2019 (2QFY19) to RM142.96 million versus RM106.15 million a year ago, as taxation halved, despite recording a sharp 55.8% decline in plantation earnings due to weaker selling prices of crude palm oil and palm kernel.
Notably, taxation fell to RM42.6 million from RM87.76 million previously. Quarterly revenue declined 15.9% to RM3.94 billion from RM4.69 billion a year ago.
Batu Kawan Bhd’s net profit in the second quarter ended March 31, 2019 (2QFY19) jumped 41.67% to RM79.29 million from RM55.97 million a year ago mainly due to lower operating expenses, finance cost and income tax expense. Quarterly revenue, however, fell 15.55% to RM4.08 billion against RM4.83 billion a year ago.
ATTA Global Group Bhd is acquiring MPSB Venture Sdn Bhd for RM28 million to diversify its business into property investment. It said the acquisition will provide it with opportunities to obtain additional land banks for future development.