Khazanah Nasional Bhd, Malaysia’s state investment company, will list hospital assets under its Integrated Healthcare Holdings Sdn Bhd unit next year, Managing Director Azman Mokhtar said in a speech in Kuala Lumpur today. He didn’t provide any details. -- Bloomberg
Friday, 25 November 2011
Sime aims for RM3.3b net profit in 2012
Plantation conglomerate, Sime Darby Bhd, today announced its Key Performance Index) for the financial year ending June 30, 2012, with a target net earnings of RM3.3 billion and a return on average shareholders' funds at 13.3 per cent.
President and Group Chief Executive Datuk Mohd Bakke Salleh said the forecast was based on crude palm oil prices at slightly below RM2,800 a tonne average.
"We have more then seven months to go. We're happy if the price stayed above RM3,000 (a tonne). It's a bonus," he told a press conference. About 60 per cent of the conglomerate's turnover came from the plantation division.
Asked why the net profit forecast was lower than the previous financial year, Mohd Bakke said: "When we do forecasting, (we) always go with the conservative and not be too aggressive."
Sime Darby posted RM3.7 billion net profit for financial year ended June 30, 2011. -- Bernama
President and Group Chief Executive Datuk Mohd Bakke Salleh said the forecast was based on crude palm oil prices at slightly below RM2,800 a tonne average.
"We have more then seven months to go. We're happy if the price stayed above RM3,000 (a tonne). It's a bonus," he told a press conference. About 60 per cent of the conglomerate's turnover came from the plantation division.
Asked why the net profit forecast was lower than the previous financial year, Mohd Bakke said: "When we do forecasting, (we) always go with the conservative and not be too aggressive."
Sime Darby posted RM3.7 billion net profit for financial year ended June 30, 2011. -- Bernama
Proton opens platinum showroom in Medan
Proton Edar Indonesia has launched its first platinum showroom in Medan to further strengthen its presence in one of its growing markets in the region.
In a statement today, Proton Holdings Bhd said the showroom, located at Jl. T. Amir Hamzah No. 41-C/43 -- Medan 20117, was launched on Nov 20, 2011 by group managing director, Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir.
Syed Zainal Abidin said the showroom would be a significant outlet as Medan has the fourth largest population in Indonesia and the next biggest market after Jakarta and Surabaya.
"We are optimistic that this new showroom will deliver the best services to our customers and will contribute significantly to the overall sales in Indonesia," he said.
The 1,200-sq metre showroom houses five service bays and is equipped with a complete range of services from routine maintenance, overhauling, and general repairs to tyre-servicing and repairing of the air-conditioning system.
It is also provides a 24-hour emergency response team to assist customers, the first of its kind for Proton service in Indonesia. -- Bernama
In a statement today, Proton Holdings Bhd said the showroom, located at Jl. T. Amir Hamzah No. 41-C/43 -- Medan 20117, was launched on Nov 20, 2011 by group managing director, Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir.
Syed Zainal Abidin said the showroom would be a significant outlet as Medan has the fourth largest population in Indonesia and the next biggest market after Jakarta and Surabaya.
"We are optimistic that this new showroom will deliver the best services to our customers and will contribute significantly to the overall sales in Indonesia," he said.
The 1,200-sq metre showroom houses five service bays and is equipped with a complete range of services from routine maintenance, overhauling, and general repairs to tyre-servicing and repairing of the air-conditioning system.
It is also provides a 24-hour emergency response team to assist customers, the first of its kind for Proton service in Indonesia. -- Bernama
Kretam records higher Q3 pre-tax profit
Palm oil plantation-based Kretam Holdings Bhd registered a higher pre-tax profit of RM25.3 million for the third quarter ended Sept 30,2011 compared with RM16.2 million chalked up in the corresponding quarter last year.
Revenue almost doubled to RM63.6 million during the period under review from RM34.5 million registered previously.
In a filing to Bursa Malaysia, Kretam said the higher revenue was in line with the recovery in its fresh fruit bunch production.
On prospects, Kretam said 2011 was expected to be another record year in terms of financial performance as the group's pre-tax profit for the first nine months of the year exceeded that of the previous corresponding period. -- Bernama
Revenue almost doubled to RM63.6 million during the period under review from RM34.5 million registered previously.
In a filing to Bursa Malaysia, Kretam said the higher revenue was in line with the recovery in its fresh fruit bunch production.
On prospects, Kretam said 2011 was expected to be another record year in terms of financial performance as the group's pre-tax profit for the first nine months of the year exceeded that of the previous corresponding period. -- Bernama
Tradewinds posts lower profit of RM40.9m
Tradewinds Corporation Bhd registered a lower pre-tax profit of RM40.87 million for the nine months ended Sept 30, 2011 compared with RM67.36 million it posted for the same period in 2010.
Revenue during the period also shed to RM384.86 million against RM433.18 million previously.
The company attributed the drop in pre-tax profit to lower revenue recorded during the period as well as higher finance costs and lower contribution from associate companies.
In a filing to Bursa Malaysia, the group said it expected its financial performance this year to be lower than last year with several of its hotels undergoing refurbishment.
"The renovation of the hotels which will be completed in stages is expected to benefit the group in the medium term."
Its property investment division's operating performance is also expected to be affected as the group is embarking on the re-development of Menara Tun Razak and the construction of a new tower block.
The re-development would have a positive impact in the longer term, it added. -- Bernama
Revenue during the period also shed to RM384.86 million against RM433.18 million previously.
The company attributed the drop in pre-tax profit to lower revenue recorded during the period as well as higher finance costs and lower contribution from associate companies.
In a filing to Bursa Malaysia, the group said it expected its financial performance this year to be lower than last year with several of its hotels undergoing refurbishment.
"The renovation of the hotels which will be completed in stages is expected to benefit the group in the medium term."
Its property investment division's operating performance is also expected to be affected as the group is embarking on the re-development of Menara Tun Razak and the construction of a new tower block.
The re-development would have a positive impact in the longer term, it added. -- Bernama
Sarawak Plant posts higher Q3 pre-tax profit
Sarawak Plantation Bhd posted an increased pre-tax profit of RM83.233 million for the first nine-months of 2011, compared with the RM41.824 million last year. Revenue also rose to RM367.746 million from the RM225.223 million recorded in the corresponding period in 2010.
In a filing to Bursa Malaysia today, Sarawak Plantation said for the third quarter ended Sept 30, 2011, it recorded a higher pre-tax profit of RM31.781 million versus RM13.159 million, previously. Revenue for the three-month period was also up to RM147.354 million from RM81.652 million last year.
"The performance of the group is largely dependent on the production, operational efficiency and price of crude palm oil (CPO).
"The group is expected to perform well for the current financial year subject to a stable market for crude oil and global oils and fats," the company said. -- Bernama
In a filing to Bursa Malaysia today, Sarawak Plantation said for the third quarter ended Sept 30, 2011, it recorded a higher pre-tax profit of RM31.781 million versus RM13.159 million, previously. Revenue for the three-month period was also up to RM147.354 million from RM81.652 million last year.
"The performance of the group is largely dependent on the production, operational efficiency and price of crude palm oil (CPO).
"The group is expected to perform well for the current financial year subject to a stable market for crude oil and global oils and fats," the company said. -- Bernama
TIME dotCom Q3 profit rises to RM42m
TIME dotCom Bhd's pre-tax profit for the third quarter ended Sept 30, 2011 rose to RM41.94 million from RM20.95 million in the same quarter of 2010.
Revenue, however, fell to RM76.98 million from RM87.35 million previously, it said in a filing to Bursa Malaysia today.
For the nine months ended Sept 30, 2011, its pre-tax profit rose to RM93.42 million from RM62.70 million in the same period last year. Revenue, however, fell to RM230.69 million from RM235.56 million previously.
TIME said it would continue to focus on expanding coverage in key market segments, strengthen and simplify its network, offer more complete end-to-end communication solutions and manage its cost to improve operating margins. -- Bernama
Revenue, however, fell to RM76.98 million from RM87.35 million previously, it said in a filing to Bursa Malaysia today.
For the nine months ended Sept 30, 2011, its pre-tax profit rose to RM93.42 million from RM62.70 million in the same period last year. Revenue, however, fell to RM230.69 million from RM235.56 million previously.
TIME said it would continue to focus on expanding coverage in key market segments, strengthen and simplify its network, offer more complete end-to-end communication solutions and manage its cost to improve operating margins. -- Bernama
IJM Corp registers lower Q2 pre-tax profit
IJM Corp Bhd's pre-tax profit for the second quarter ended Sept 30, 2011 fell to RM161 million from RM194 million in the same quarter 2010.
Revenue rose to RM1,097 million from RM785 million, the company said in a filing to Bursa Malaysia today.
In a separate filing, IJM Land Bhd said its pre-tax profit for the second quarter rose to RM57 million from RM41 million on a higher revenue of RM294 million from RM212 million.
The better results were mainly due to improved work progress from the group's on-going projects as well as the completion of the sale of some commercial land parcels in Seremban 2 in the immediate preceeding quarter, it said.
Meanwhile, IJM Plantations Bhd's pre-tax profit for the second quarter fell to RM62 million from RM64 million though revenue increased to RM180 million from RM133 million. -- Bernama
Revenue rose to RM1,097 million from RM785 million, the company said in a filing to Bursa Malaysia today.
In a separate filing, IJM Land Bhd said its pre-tax profit for the second quarter rose to RM57 million from RM41 million on a higher revenue of RM294 million from RM212 million.
The better results were mainly due to improved work progress from the group's on-going projects as well as the completion of the sale of some commercial land parcels in Seremban 2 in the immediate preceeding quarter, it said.
Meanwhile, IJM Plantations Bhd's pre-tax profit for the second quarter fell to RM62 million from RM64 million though revenue increased to RM180 million from RM133 million. -- Bernama
Kulim Q3 pre-tax profit drops to RM266m
Kulim (Malaysia) Bhd's pre-tax profit for the third quarter ended Sept 30, 2011, declined to RM265.868 million from the RM329.655 million recorded in the same period last year. Revenue, however, rose to RM1.78 billion from RM1.461 billion previously.
Kulim in a filing to Bursa Malaysia today said the lower pre-tax profit for the current quarter, was due to the disposal of Oleochemicals Group, recorded as a profit of RM156 million last year.
For the nine-months period, the company's pre-tax profit jumped to RM1.067 billion from RM560.062 million last year on revenue of RM5.24 billion and RM4.056 billion respectively.
On prospects, Kulim is confident that this year will be another good one for the company as the shipping business registered an improvement, with all ordered vessels having been progressively delivered to the oil majors on term and are currently operating smoothly. -- Bernama
Kulim in a filing to Bursa Malaysia today said the lower pre-tax profit for the current quarter, was due to the disposal of Oleochemicals Group, recorded as a profit of RM156 million last year.
For the nine-months period, the company's pre-tax profit jumped to RM1.067 billion from RM560.062 million last year on revenue of RM5.24 billion and RM4.056 billion respectively.
On prospects, Kulim is confident that this year will be another good one for the company as the shipping business registered an improvement, with all ordered vessels having been progressively delivered to the oil majors on term and are currently operating smoothly. -- Bernama
Takaful 9-month profit jumps to RM60m
Syarikat Takaful Malaysia Bhd's profit before zakat and taxation increased 81 per cent to RM60 million, for the nine months ended 30 Sept, 2011 as compared with RM33.2 million last year.
The group operating revenue for nine months increased by 18 per cent to RM1.04 billion from RM889 million in the same period of the preceding year.
Its group managing director, Datuk Mohamed Hassan Kamil attributed the growth to the General Takaful and Group Family Takaful businesses. "Our investments also performed well for the nine months despite the market correction in the third quarter.
"Our track record in managing the internal takaful funds clearly indicate our ability to outperform the market for investment linked shariah funds," he said in a statement today.
Takaful Malaysia had recently declared an interim dividend of seven per cent. This comprised five per cent less 25 per cent taxation and two per cent single tier, which will result in a payout on Dec 2, 2011 amounting to RM9.36 million in respect of the financial year ending Dec 31, 2011. -- Bernama
The group operating revenue for nine months increased by 18 per cent to RM1.04 billion from RM889 million in the same period of the preceding year.
Its group managing director, Datuk Mohamed Hassan Kamil attributed the growth to the General Takaful and Group Family Takaful businesses. "Our investments also performed well for the nine months despite the market correction in the third quarter.
"Our track record in managing the internal takaful funds clearly indicate our ability to outperform the market for investment linked shariah funds," he said in a statement today.
Takaful Malaysia had recently declared an interim dividend of seven per cent. This comprised five per cent less 25 per cent taxation and two per cent single tier, which will result in a payout on Dec 2, 2011 amounting to RM9.36 million in respect of the financial year ending Dec 31, 2011. -- Bernama
Cahya Mata Jan-Sept profit rises to RM140m
Cahya Mata Sarawak Bhd posted an increase in its pre-tax profit to RM140.185 million for the first nine-months of 2011, compared with RM68.611 million last year.
Revenue also rose to RM725.089 million from the RM659.431 million recorded in the corresponding period of 2010.
In a filing to Bursa Malaysia today, Cahya Mata Sarawak said: "The Group's earnings was mainly driven by the manufacturing division followed by construction and road maintenance as well as the construction materials division."
Revenue also rose to RM725.089 million from the RM659.431 million recorded in the corresponding period of 2010.
In a filing to Bursa Malaysia today, Cahya Mata Sarawak said: "The Group's earnings was mainly driven by the manufacturing division followed by construction and road maintenance as well as the construction materials division."
Carotech posts Q1 pre-tax loss
Carotech Bhd, an ACE Market listed company, suffered pre-tax loss of RM16.233 million in its first quarter ended Sept 30, 2011, compared to a pre-tax profit of RM2.887 million in the same
period, last year. Revenue for the three-months, however, rose to RM12.988 million from RM10.420 million previously.
In a filing to Bursa Malaysia today, the company said the heavy loss was mainly due to production costs incurred to further process existing work-in-progress stocks, into the required concentration for sales.
"The board of directors anticipates the coming financial year to be challenging, with the debt restructuring exercise pending, and the continued poor economic sentiment globally," the company said. -- Bernama
period, last year. Revenue for the three-months, however, rose to RM12.988 million from RM10.420 million previously.
In a filing to Bursa Malaysia today, the company said the heavy loss was mainly due to production costs incurred to further process existing work-in-progress stocks, into the required concentration for sales.
"The board of directors anticipates the coming financial year to be challenging, with the debt restructuring exercise pending, and the continued poor economic sentiment globally," the company said. -- Bernama
Tekala Corp posts Q2 pre-tax loss
Tekala Corp Bhd's pre-tax loss for the second quarter ended Sept 30, 2011, increased to RM69.1 million from RM4.96 million. Its revenue also decreased to RM24.3 million during the period under review from RM35.4 million registered previously.
In a filing to Bursa Malaysia today, Tekala Corp said the decrease in revenue for the current quarter was mainly due to lower plywood sales.
Meanwhile, its pre-tax loss for the quarter was due to impairment losses of vessel and receivables of a subsidiary.
"Barring any unforeseen circumstances, the directors expect the group's results for the remaining financial year to improve," Tekala Corp added. -- Bernama
In a filing to Bursa Malaysia today, Tekala Corp said the decrease in revenue for the current quarter was mainly due to lower plywood sales.
Meanwhile, its pre-tax loss for the quarter was due to impairment losses of vessel and receivables of a subsidiary.
"Barring any unforeseen circumstances, the directors expect the group's results for the remaining financial year to improve," Tekala Corp added. -- Bernama
Mamee-Double Decker Q3 profit at RM4.9m
Mamee-Double Decker (M) Bhd has posted a pre-tax profit of RM4.9 million for the third quarter ended Sept 30, 2011, compared with RM15.6 million in the previous corresponding quarter. Its revenue increased 6.0 per cent to RM129.1 million from RM121.8 million previously.
In a filing to Bursa Malaysia today, Mamee-Double Decker said the profit
reduction was caused by the increase in raw material and other commodity prices, as well as higher advertising and promotional expenditure.
Meanwhile, the increase in revenue was contributed by higher sales from the
foreign markets with better pricing structure. "The board will continue to strengthen its operations, not only by implementing continuous improvements in selling and distribution channels, but also by investing capital expenditure to increase and enhance the group's production capacity," the group said. -- Bernama
In a filing to Bursa Malaysia today, Mamee-Double Decker said the profit
reduction was caused by the increase in raw material and other commodity prices, as well as higher advertising and promotional expenditure.
Meanwhile, the increase in revenue was contributed by higher sales from the
foreign markets with better pricing structure. "The board will continue to strengthen its operations, not only by implementing continuous improvements in selling and distribution channels, but also by investing capital expenditure to increase and enhance the group's production capacity," the group said. -- Bernama
Firefly promotes Subang-Kuantan route
Firefly, a wholly-owned subsidiary of Malaysia Airlines (MAS), is promoting its latest route, between Subang and Kuantan, to the people.
Its Marketing and Communications head Angelina C Fernandez was at the Gombak Toll Plaza today to reach out to motorists as part of the promotional campaign.
"We are reaching out to motorists who travel regularly by road between Kuala Lumpur and Kuantan. We are offering them a more comfortable, safer and faster transportation choice.
"This is part of our marketing efforts to promote the twice daily Subang–Kuantan flight," the airline said in a statement.
It said Firefly would continue to raise awareness on its services at the Gombak Toll Plaza until Monday.
Currently, Firefly operates a fleet of 12 ATR 72-500 turboprop aircraft out of Penang and Subang, connecting destinations within the Indonesia-Malaysia-Thailand Growth Triangle and providing air linkages between Malaysia and Singapore. -- Bernama
Its Marketing and Communications head Angelina C Fernandez was at the Gombak Toll Plaza today to reach out to motorists as part of the promotional campaign.
"We are reaching out to motorists who travel regularly by road between Kuala Lumpur and Kuantan. We are offering them a more comfortable, safer and faster transportation choice.
"This is part of our marketing efforts to promote the twice daily Subang–Kuantan flight," the airline said in a statement.
It said Firefly would continue to raise awareness on its services at the Gombak Toll Plaza until Monday.
Currently, Firefly operates a fleet of 12 ATR 72-500 turboprop aircraft out of Penang and Subang, connecting destinations within the Indonesia-Malaysia-Thailand Growth Triangle and providing air linkages between Malaysia and Singapore. -- Bernama
Huat Lai posts lower Q3 pre-tax profit
Huat Lai Resources Bhd's pre-tax profit for the third quarter ended Sept 30, 2011 fell to RM15.11 million from RM21.70 million in the same quarter of 2010. Revenue, however, rose to RM171.28 million from RM164.07 million previously, it said in a filing to Bursa Malaysia today.
For the nine months ended Sept 30, 2011, its pre-tax profit rose to RM43.67
million from RM23.68 million in the same period last year. Revenue strengthened to RM502.14 million from RM450.53 million previously.
Huat Lai Resources expected the prospect of the group to remain positive due
to the underlying strong demand for poultry products. -- Bernama
For the nine months ended Sept 30, 2011, its pre-tax profit rose to RM43.67
million from RM23.68 million in the same period last year. Revenue strengthened to RM502.14 million from RM450.53 million previously.
Huat Lai Resources expected the prospect of the group to remain positive due
to the underlying strong demand for poultry products. -- Bernama
QSR Brands 9-month profit drops to RM188m
QSR Brands Bhd reported a drop in pre-tax profit to RM187.926 million in the first nine-months of 2011 compared with RM189.186 million registered last year.
Revenue, however, rose to RM2.426 billion, during the period under review, from RM2.204 billion recorded in the corresponding period last year.
In a filing to Bursa Malaysia, QSR Brands said the economies of the other markets where the group operates such as in Singapore, Brunei and India are still robust with healthy gross domestic product growth while Cambodia is steadily recovering. -- Bernama
Revenue, however, rose to RM2.426 billion, during the period under review, from RM2.204 billion recorded in the corresponding period last year.
In a filing to Bursa Malaysia, QSR Brands said the economies of the other markets where the group operates such as in Singapore, Brunei and India are still robust with healthy gross domestic product growth while Cambodia is steadily recovering. -- Bernama
MRCB reaps RM16.5m pre-tax profit in Q3
Malaysian Resources Corp Bhd (MRCB)'s pre-tax profit rose to RM16.48 million for the third quarter ended Sept 30, 2011 versus RM15.01 million registered in the same quarter last year.
Revenue increased to RM286.35 million from RM270.91 million, raked in the same quarter last year, MRCB said in filing to Bursa Malaysia yesterday. -- Bernama
Revenue increased to RM286.35 million from RM270.91 million, raked in the same quarter last year, MRCB said in filing to Bursa Malaysia yesterday. -- Bernama
Kinsteel posts lower Q3 pre-tax loss
Kinsteel Bhd reported a smaller pre-tax loss of RM25.76 million for the third quarter ended Sept 30, 2011 compared with a pre-tax loss of RM49.29 million registered in the same quarter last year. Revenue increased to RM403.77 million from RM360.07 million raked in the same quarter last year, Kinsteel said in filing to Bursa Malaysia.
The group is optimistic its concentration and pelletising plant would
significantly reduce production cost and enable it to position itself more
competitively, going forward. -- Bernama
The group is optimistic its concentration and pelletising plant would
significantly reduce production cost and enable it to position itself more
competitively, going forward. -- Bernama
Mitrajaya Q3 pre-tax profit falls to RM17.7m
Mitrajaya Holdings Bhd's pre-tax profit fell to RM17.71 million for the third quarter ended Sept 30, 2011 against RM22.17 million registered in the same quarter last year.
In a filing to Bursa Malaysia yesterday, Mitrajaya said revenue declined to RM58.35 million compared with RM83.36 million posted in the same quarter last year.
The group hopes its financial performance will remain satisfactory for the year ending Dec 31, 2011. -- Bernama
In a filing to Bursa Malaysia yesterday, Mitrajaya said revenue declined to RM58.35 million compared with RM83.36 million posted in the same quarter last year.
The group hopes its financial performance will remain satisfactory for the year ending Dec 31, 2011. -- Bernama
Sersol detects embezzlement in Zhuhai associate
KUALA LUMPUR (Nov 25): SERSOL TECHNOLOGIES BHD [] has detected embezzlement in its 50% owned associate Zhuhai MS Coating Ltd (ZMCL) and the losses are estimated to be 1.756 million renminbi (RM874,000).
The ACE-listed company said on Friday that it had in September detected discrepancies in the bank accounts of ZMCL and found that cash embezzlement had occurred in ZMCL.
“The embezzlement was committed by a former employee of ZMCL who has been detained by the Police Investigative Bureau of Zhuhai, China since Oct 3, 2011 for questioning and to facilitate their investigation,” it said.
Sersol said the authorities have yet to complete their probe. However, the company carried out an internal probe and also engaged a Chinese CPA firm, Da Hua Certified Public Accountants China to conduct an independent investigation.
It said the embezzlement started during the financial year ended (FYE) Dec 31, 2009. It was committed through fraudulent withdrawals from ZMCL’s bank accounts, namely the main bank account maintained with Bank of CONSTRUCTION [], China.
“The former employee was able to conceal the fraud from detection by management and ZMCL’s auditors over a prolonged period through a combination of using fictitious bank statements and other banking and accounting related documents.
“Sersol’s internal investigation estimated the losses to be 1.756 million renminbi (RM874,000) whilst the findings of the independent review performed by the Chinese CPA firm estimated the losses to be 1.727 million renminbi.
It said that it had yet to determine the quantum of losses sustained in each respective financial years/period arising from the embezzlement.
“Taking into consideration the minority interests, the estimated losses attributable to the shareholders of Sersol is RM437,000,” it said.
The ACE-listed company said on Friday that it had in September detected discrepancies in the bank accounts of ZMCL and found that cash embezzlement had occurred in ZMCL.
“The embezzlement was committed by a former employee of ZMCL who has been detained by the Police Investigative Bureau of Zhuhai, China since Oct 3, 2011 for questioning and to facilitate their investigation,” it said.
Sersol said the authorities have yet to complete their probe. However, the company carried out an internal probe and also engaged a Chinese CPA firm, Da Hua Certified Public Accountants China to conduct an independent investigation.
It said the embezzlement started during the financial year ended (FYE) Dec 31, 2009. It was committed through fraudulent withdrawals from ZMCL’s bank accounts, namely the main bank account maintained with Bank of CONSTRUCTION [], China.
“The former employee was able to conceal the fraud from detection by management and ZMCL’s auditors over a prolonged period through a combination of using fictitious bank statements and other banking and accounting related documents.
“Sersol’s internal investigation estimated the losses to be 1.756 million renminbi (RM874,000) whilst the findings of the independent review performed by the Chinese CPA firm estimated the losses to be 1.727 million renminbi.
It said that it had yet to determine the quantum of losses sustained in each respective financial years/period arising from the embezzlement.
“Taking into consideration the minority interests, the estimated losses attributable to the shareholders of Sersol is RM437,000,” it said.
QSR 3Q earnings fall 10.5% to RM22.6m on inflationary pressures
KUALA LUMPUR (Nov 25): QSR BRANDS BHD []’s earnings fell 10.5% to RM22.22 million in the third quarter ended Sept 30 from RM25.33 million a year ago, as its margins were affected by inflationary pressures including commodity costs.
It said on Friday that its revenue increased 10% to RM821.49 million from RM746.49 million while earnings per share were 8.13 sen versus 9.22 sen.
However, profit before tax fell 10.1% to RM 58.50 million from RM65.10 million a year ago in the previous year corresponding quarter.
“The group continued to achieve commendable sales growth amid a challenging economic environment. All business segments continued to be subjected to inflationary pressures with higher supplies costs, commodity costs and energy costs,” it said.
“The group’s investments in KFC India and KFCH International College continue to incur initial start-up loss before they achieve critical mass of operations. As for KFC Cambodia, the loss for the quarter reduced on the back of substantially higher revenue,” it said.
For the nine-month period, its earnings shed 0.7% to RM74.41 million from RM74.91 million in the previous corresponding period while revenue increased by 10% to RM2.426 billion from RM2.204 billion.
Commenting on the Pizza Hut Restaurants segment, it said the Malaysia operations recorded a 6.1% increase in revenue to RM316.60 million (2010: RM298.40 million) while profit before tax was relatively unchanged at RM37.0 million (2010: RM 36.20 million).
“Although turnover posted a moderate growth, profit was affected by inflationary cost pressures arising from higher food cost, labour cost and energy cost,” it said.
On the Singapore operations, QSR said revenue increased by 13.5% to RM142.10 million (2010: RM125.20 million) and profit increased by 96.4 % to RM 5.5 million (2010: RM2.8 million).
On the KFC restaurants, it said for the Cambodia operations, revenue rose by 4.8% to RM8.7 million (2010: RM8.3 million) but loss increased to RM3.90 million (2010: RM 2.9 million).
There were 10 restaurants as at end September 2011 with no new openings during the period under review. The dismal result was affected by Cambodia’s weak economy but this is however showing signs of recovery.
“The menu was also revamped by offering products that suit local demands and it is showing encouraging results that will contribute positively to earnings,” it said.
On the KFC Holdings (Malaysia) Bhd group, it said its revenue rose 10.5% to RM2.032 billion from RM 1.838 billion in the previous corresponding period. However, it posted a lower profit before tax of RM154.50 million in the cumulative quarters compared with RM158.40 million a year ago.
“Whilst the group recorded a respectable revenue growth, its profitability was affected by cost pressures arising from higher restaurants’ supplies costs, labour costs and energy costs and was also affected by the initial years start-up loss incurred by KFC India and the KFCH International College,” it said.
It said on Friday that its revenue increased 10% to RM821.49 million from RM746.49 million while earnings per share were 8.13 sen versus 9.22 sen.
However, profit before tax fell 10.1% to RM 58.50 million from RM65.10 million a year ago in the previous year corresponding quarter.
“The group continued to achieve commendable sales growth amid a challenging economic environment. All business segments continued to be subjected to inflationary pressures with higher supplies costs, commodity costs and energy costs,” it said.
“The group’s investments in KFC India and KFCH International College continue to incur initial start-up loss before they achieve critical mass of operations. As for KFC Cambodia, the loss for the quarter reduced on the back of substantially higher revenue,” it said.
For the nine-month period, its earnings shed 0.7% to RM74.41 million from RM74.91 million in the previous corresponding period while revenue increased by 10% to RM2.426 billion from RM2.204 billion.
Commenting on the Pizza Hut Restaurants segment, it said the Malaysia operations recorded a 6.1% increase in revenue to RM316.60 million (2010: RM298.40 million) while profit before tax was relatively unchanged at RM37.0 million (2010: RM 36.20 million).
“Although turnover posted a moderate growth, profit was affected by inflationary cost pressures arising from higher food cost, labour cost and energy cost,” it said.
On the Singapore operations, QSR said revenue increased by 13.5% to RM142.10 million (2010: RM125.20 million) and profit increased by 96.4 % to RM 5.5 million (2010: RM2.8 million).
On the KFC restaurants, it said for the Cambodia operations, revenue rose by 4.8% to RM8.7 million (2010: RM8.3 million) but loss increased to RM3.90 million (2010: RM 2.9 million).
There were 10 restaurants as at end September 2011 with no new openings during the period under review. The dismal result was affected by Cambodia’s weak economy but this is however showing signs of recovery.
“The menu was also revamped by offering products that suit local demands and it is showing encouraging results that will contribute positively to earnings,” it said.
On the KFC Holdings (Malaysia) Bhd group, it said its revenue rose 10.5% to RM2.032 billion from RM 1.838 billion in the previous corresponding period. However, it posted a lower profit before tax of RM154.50 million in the cumulative quarters compared with RM158.40 million a year ago.
“Whilst the group recorded a respectable revenue growth, its profitability was affected by cost pressures arising from higher restaurants’ supplies costs, labour costs and energy costs and was also affected by the initial years start-up loss incurred by KFC India and the KFCH International College,” it said.
Sarawak Oil Palms 3Q net profit rises 52.1% to RM73.14m
KUALA LUMPUR (Nov 25): SARAWAK OIL PALMS BHD [] (SOP) net profit for the third quarter ended Sept 30, 2011 rose 52.1% to RM75.14 million from RM49.4 million a year earlier, due mainly to the higher average crude palm oil (CPO) and palm kernel (PK) prices realised and sales volume.
The company said on Friday that its revenue for the quarter increased 53% to RM326.06 million from RM213 million.
Earnings per share for the quarter rose to 17.32 sen from 11.46 sen, while net assets per share was RM2.69.
For the nine months ended Sept 30, SOP’s net profit surged to RM199.63 million from RM102.77 million in 2010, on the back of an increase in revenue to RM852.72 million from RM515.57 million.
Reviewing its performance, SOP said the sales volume for CPO and PK increased by 47,183 tonnes or 28% and 10,549 tonnes or 31% respectively compared to previous year corresponding period.
On its prospects, SOP said the performance of the group was largely dependent on developments in the world edible oil market, bio-diesel market, fossil oil market, movement of the ringgit, world economic situation and their corresponding effect on CPO prices.
The company said on Friday that its revenue for the quarter increased 53% to RM326.06 million from RM213 million.
Earnings per share for the quarter rose to 17.32 sen from 11.46 sen, while net assets per share was RM2.69.
For the nine months ended Sept 30, SOP’s net profit surged to RM199.63 million from RM102.77 million in 2010, on the back of an increase in revenue to RM852.72 million from RM515.57 million.
Reviewing its performance, SOP said the sales volume for CPO and PK increased by 47,183 tonnes or 28% and 10,549 tonnes or 31% respectively compared to previous year corresponding period.
On its prospects, SOP said the performance of the group was largely dependent on developments in the world edible oil market, bio-diesel market, fossil oil market, movement of the ringgit, world economic situation and their corresponding effect on CPO prices.
KFCH 3Q earnings dn 12.2% to RM33.5m as inflation bites
KUALA LUMPUR (Nov 25): KFC Holdings (Malaysia) Bhd reported a 12.2% decline in its third quarter earnings to RM33.52 million from RM38.20 million a year ago as it was affected by the higher food, commodity and energy costs.
It said on Friday, the Group’s investments in KFC India and KFCH International College continued to incur initial start-up loss before they achieve critical mass of operations.
KFCH’s revenue rose 10.5% to RM697.83 million from RM631.55 million. However, profit before tax decreased by 13% to RM 48.9 million from RM 56.2 mil on-year. Its earnings per share were 4.23 sen compared with 4.82 sen.
Its nine-month earnings shed 2% to RM106 million from RM108.17 million in the previous corresponding period. Its revenue rose 10.5% to RM2.032 billion from RM1.838 billion a year ago.
On the Malaysian operations, it said KFCH Malaysia’s revenue increased by 10.2% to RM1.200 billion (2010 : RM1.089 billion) and profit before tax increased by 6.4% to RM148.60 million (2010 : RM139.60 million).
It said the Malaysian operations continued to expand its network, where 28 new restaurants including eight drive-thru restaurants were opened over the last 12 months. This increased the total number to 529 restaurants at end September 2011 (2010: 501 restaurants ).
KFCH also said 22 existing restaurants were remodeled during the period under review.
It added that during the period, it introduced innovative products including value promotions to encourage new trials and repeat visits.
“Profits was subjected to cost pressures arising from higher restaurants’ supplies costs and labour costs as well as higher energy costs pursuant to the upward revision of electricity tariff in June 2011,” it said
On the Singapore operations, it said revenue rose 14.4% to RM300.70 million (2010: RM262.90 million) and profit before tax increased by 14.9% to RM13.10 million (2010: RM11.40 million).
As for the Brunei operations, it said revenue increased to RM14.30 million (2010: RM11.50 million) and profit before tax declined to RM800,000 (2010: RM1.4 million) due to inflationary pressures.
There were 10 KFC restaurants in Brunei as at end September 2011 with the addition of a new restaurant and the reopening of a temporarily closed outlet since October 2010.
On the Indian operations, it said revenue increased to RM13.80 million (2010: RM2.90 million) in tandem with the higher number of restaurants.
KFC India added eight restaurants during the 12 months ended September 2011 which increased its footprint to 10 restaurants (2010: 2 restaurants).
“However, it posted loss of RM 6.8 million (2010: RM2.20 million) due to initial start-up costs incurred for general and administration expenditures while the restaurants were being developed,” it said.
On the KFCH group’s integrated poultry segment, it said revenue rose 7.0% to RM423.90 million (2010: RM 396.20 million) but profits declined to RM1.5 million (2010: RM 3.4 million).
“Sales of chicken products to the KFC restaurants and external customers improved but profit was adversely affected by the higher cost of broiler purchases as the group had to source from the open market to supplement the requirements of its expanded KFC network of restaurants,” it said.
It said on Friday, the Group’s investments in KFC India and KFCH International College continued to incur initial start-up loss before they achieve critical mass of operations.
KFCH’s revenue rose 10.5% to RM697.83 million from RM631.55 million. However, profit before tax decreased by 13% to RM 48.9 million from RM 56.2 mil on-year. Its earnings per share were 4.23 sen compared with 4.82 sen.
Its nine-month earnings shed 2% to RM106 million from RM108.17 million in the previous corresponding period. Its revenue rose 10.5% to RM2.032 billion from RM1.838 billion a year ago.
On the Malaysian operations, it said KFCH Malaysia’s revenue increased by 10.2% to RM1.200 billion (2010 : RM1.089 billion) and profit before tax increased by 6.4% to RM148.60 million (2010 : RM139.60 million).
It said the Malaysian operations continued to expand its network, where 28 new restaurants including eight drive-thru restaurants were opened over the last 12 months. This increased the total number to 529 restaurants at end September 2011 (2010: 501 restaurants ).
KFCH also said 22 existing restaurants were remodeled during the period under review.
It added that during the period, it introduced innovative products including value promotions to encourage new trials and repeat visits.
“Profits was subjected to cost pressures arising from higher restaurants’ supplies costs and labour costs as well as higher energy costs pursuant to the upward revision of electricity tariff in June 2011,” it said
On the Singapore operations, it said revenue rose 14.4% to RM300.70 million (2010: RM262.90 million) and profit before tax increased by 14.9% to RM13.10 million (2010: RM11.40 million).
As for the Brunei operations, it said revenue increased to RM14.30 million (2010: RM11.50 million) and profit before tax declined to RM800,000 (2010: RM1.4 million) due to inflationary pressures.
There were 10 KFC restaurants in Brunei as at end September 2011 with the addition of a new restaurant and the reopening of a temporarily closed outlet since October 2010.
On the Indian operations, it said revenue increased to RM13.80 million (2010: RM2.90 million) in tandem with the higher number of restaurants.
KFC India added eight restaurants during the 12 months ended September 2011 which increased its footprint to 10 restaurants (2010: 2 restaurants).
“However, it posted loss of RM 6.8 million (2010: RM2.20 million) due to initial start-up costs incurred for general and administration expenditures while the restaurants were being developed,” it said.
On the KFCH group’s integrated poultry segment, it said revenue rose 7.0% to RM423.90 million (2010: RM 396.20 million) but profits declined to RM1.5 million (2010: RM 3.4 million).
“Sales of chicken products to the KFC restaurants and external customers improved but profit was adversely affected by the higher cost of broiler purchases as the group had to source from the open market to supplement the requirements of its expanded KFC network of restaurants,” it said.
Kulim 3Q earnings fall 40% to RM171m on-year
KUALA LUMPUR (Nov 25): KULIM (M) BHD []’s earnings slumped 39.9% to RM171.07 million in the third quarter ended Sept 30 from RM284.65 million a year ago.
It said on Friday that group profit fell 31.74% to RM249.8 million from RM365.92 million a year ago due to the disposal of oleochemicals group that recorded a profit of RM156 million last year.
Its revenue rose 21.7% to RM1.780 billion from RM1.461 billion while earnings per share were 13.97 sen compared with 91.13 sen.
For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million while revenue rose at a slightly stronger pace of 29.2% to RM5.240 billion from RM4.056 billion.
Kulim said the group’s cumulative fresh fruit bunches (FFB) production inclusive of SINDORA BHD [] for the nine-month period was 13.48% higher at 465,807 tonnes from a year ago.
The group’s oil extraction rate for the nine-months was marginally lower inclusive Sindora at 20.14% compared to 20.26%.
Its Malaysian PLANTATION [] operations achieved crude palm oil (CPO) and palm kernel cumulative price averages of RM3,248 and RM2,433 per tonne respectively for the nine-months compared to RM2,511 and RM1,488 per tonne for CPO and PK respectively a year ago.
It said on Friday that group profit fell 31.74% to RM249.8 million from RM365.92 million a year ago due to the disposal of oleochemicals group that recorded a profit of RM156 million last year.
Its revenue rose 21.7% to RM1.780 billion from RM1.461 billion while earnings per share were 13.97 sen compared with 91.13 sen.
For the nine-month period, its net profit increased 23% to RM444.46 million from RM361.21 million while revenue rose at a slightly stronger pace of 29.2% to RM5.240 billion from RM4.056 billion.
Kulim said the group’s cumulative fresh fruit bunches (FFB) production inclusive of SINDORA BHD [] for the nine-month period was 13.48% higher at 465,807 tonnes from a year ago.
The group’s oil extraction rate for the nine-months was marginally lower inclusive Sindora at 20.14% compared to 20.26%.
Its Malaysian PLANTATION [] operations achieved crude palm oil (CPO) and palm kernel cumulative price averages of RM3,248 and RM2,433 per tonne respectively for the nine-months compared to RM2,511 and RM1,488 per tonne for CPO and PK respectively a year ago.
S&P: MISC’s planned exit from liner biz no impact on rating
KUALA LUMPUR (Nov 25): Standard & Poor's Ratings Services’ rating on MISC BHD [] (BBB+/Negative/--) is not affected by the shipping company's planned exit from the liner business by June 2012.
The ratings agency said on Friday while the proposed transaction will likely result in losses for MISC, most of the losses will be non-cash in nature.
“Nevertheless, we believe the business relationship between MISC and its parent has strengthened over this period, supporting the rating. Petroliam Nasional Bhd. (foreign currency A-/Stable/--; local currency A/Stable/--; axAA+/--) owns a 62.7% stake in the company,” it said.
MISC, had on Thursday, said it had decided to exit from the liner (container shipping) business operations due to the current challenging conditions and high operating cost environment. Its liner business suffered a total financial loss of US$789 million over the past three financial years which had impacted the overall financial performance of MISC.
MISC had also then said it expected to incur losses in current financial year ending Dec 31, 2011 after it decided to exit its liner business operations, as the expected one-off costs to the income statement are estimated to be approximately US$400 million..
For the second quarter ended Sept 30, 2011, MISC’s 2Q net profit fell 61.8% to RM140.96 million from RM369.36 million a year earlier, due mainly to depressed aframax freight rates in petroleum business, lower liftings in Liner business and high bunker costs. Its revenue for the quarter fell 15.1% to RM2.62 billion from RM3.08 billion.
For the six months ended Sept 30, MISC’s net profit slumped to RM262.04 million from RM797.34 million, on the back of a decline in revenue to RM5.63 billion from RM6.36 billion in 2010.
The ratings agency said on Friday while the proposed transaction will likely result in losses for MISC, most of the losses will be non-cash in nature.
“Nevertheless, we believe the business relationship between MISC and its parent has strengthened over this period, supporting the rating. Petroliam Nasional Bhd. (foreign currency A-/Stable/--; local currency A/Stable/--; axAA+/--) owns a 62.7% stake in the company,” it said.
MISC, had on Thursday, said it had decided to exit from the liner (container shipping) business operations due to the current challenging conditions and high operating cost environment. Its liner business suffered a total financial loss of US$789 million over the past three financial years which had impacted the overall financial performance of MISC.
MISC had also then said it expected to incur losses in current financial year ending Dec 31, 2011 after it decided to exit its liner business operations, as the expected one-off costs to the income statement are estimated to be approximately US$400 million..
For the second quarter ended Sept 30, 2011, MISC’s 2Q net profit fell 61.8% to RM140.96 million from RM369.36 million a year earlier, due mainly to depressed aframax freight rates in petroleum business, lower liftings in Liner business and high bunker costs. Its revenue for the quarter fell 15.1% to RM2.62 billion from RM3.08 billion.
For the six months ended Sept 30, MISC’s net profit slumped to RM262.04 million from RM797.34 million, on the back of a decline in revenue to RM5.63 billion from RM6.36 billion in 2010.
Panasonic 2Q net profit falls 7.59% to RM20.32m
KUALA LUMPUR (Nov 25): Panasonic Manufacturing Malaysia Bhd net profit for the second quarter ended Sept 30, 2011 fell 7.59% to RM20.32 million from RM21.99 million a year earlier, due mainly to a derivative loss amounting to RM3.4 million.
The company said on Friday that its revenue for the quarter rose 10.23% to RM222.85 million from RM202.16 million in 2010.
Earnings per share fell to 33 sen from 36 sen in 2010, while net assets per share was RM10.33.
The company declared a gross interim dividend of 15 sen per share for the financial year ending March 31, 2012.
For the six months ended Sept 30, Panasonic’s net profit fell to RM39.14 million from RM41.29 million, on the back of an increase in revenue to RM444.66 million from RM407.7 million.
Reviewing its performance, Panasonic said that its profitability had been affected by rising cost of raw materials, the strengthening of the ringgit against major currencies; US dollars and Japanese Yen, which had eroded export revenue and the increased costs for certain parts of which supply from its original maker has been disrupted by the Japan earthquake.
In addition, included in the current period’s combined profit before tax was a derivative loss amounting to RM4.0 million compared to a derivative loss of RM127,000 in the previous year’s corresponding period, it said.
On its prospects, Panasonic said the current outlook for the remaining financial year remained challenging.
“This is because the prevailing political instability in the Middle East region and the flood crisis in Thailand will have an unfavorable impact on the company’s export sales,” it said.
Panasonic said that whilst it had mitigated the supply chain disruption arising from the Japan earthquake by securing new sources of supply, the cost of parts had increased and this had a negative impact on the bottom line.
“Nonetheless, as the company’s export revenue are mainly denominated in US dollars and Japanese Yen, the recent strengthening of these currencies against the ringgit coupled with the easing of the price of raw materials will cushion some of the negative impact.
“Despite the challenging outlook ahead, the company will remain profitable for the current financial year,” it said.
The company said on Friday that its revenue for the quarter rose 10.23% to RM222.85 million from RM202.16 million in 2010.
Earnings per share fell to 33 sen from 36 sen in 2010, while net assets per share was RM10.33.
The company declared a gross interim dividend of 15 sen per share for the financial year ending March 31, 2012.
For the six months ended Sept 30, Panasonic’s net profit fell to RM39.14 million from RM41.29 million, on the back of an increase in revenue to RM444.66 million from RM407.7 million.
Reviewing its performance, Panasonic said that its profitability had been affected by rising cost of raw materials, the strengthening of the ringgit against major currencies; US dollars and Japanese Yen, which had eroded export revenue and the increased costs for certain parts of which supply from its original maker has been disrupted by the Japan earthquake.
In addition, included in the current period’s combined profit before tax was a derivative loss amounting to RM4.0 million compared to a derivative loss of RM127,000 in the previous year’s corresponding period, it said.
On its prospects, Panasonic said the current outlook for the remaining financial year remained challenging.
“This is because the prevailing political instability in the Middle East region and the flood crisis in Thailand will have an unfavorable impact on the company’s export sales,” it said.
Panasonic said that whilst it had mitigated the supply chain disruption arising from the Japan earthquake by securing new sources of supply, the cost of parts had increased and this had a negative impact on the bottom line.
“Nonetheless, as the company’s export revenue are mainly denominated in US dollars and Japanese Yen, the recent strengthening of these currencies against the ringgit coupled with the easing of the price of raw materials will cushion some of the negative impact.
“Despite the challenging outlook ahead, the company will remain profitable for the current financial year,” it said.
Cahya Mata Sarawak 3Q net profit up 42.74% to RM38.17m
KUALA LUMPUR (Nov 25): CAHYA MATA SARAWAK BHD [] (CMSB) net profit for the third quarter ended Sept 30, 2011 rose 42.74% to RM38.17 million from RM26.74 million a year earlier, driven mainly by its manufacturing division.
The company said on Friday that its revenue for the quarter increased 3.57% to RM240.76 million from RM232.46 million in 2010.
Earnings per share for the quarter rose to 11.59 sen from 8.12 sen in 2010, while net assets per share was RM4.22.
CMSB’s net profit for the nine months ended Sept 30 rose to RM96.59 million from RM46.18 million in 2010, on the back of an increase in revenue to RM725.09 million from RM659.43 million.
Reviewing its performance, CMSB said its earnings continued to be mainly driven by its manufacturing division followed by the CONSTRUCTION [] & road maintenance and the construction materials divisions.
The manufacturing division, being the key driver and largest contributor to the group’s profitability, continued to achieve higher profit due to higher sales volume and an upward revision of prices, it said.
“All Divisions reported higher profits except for construction material and trading divisions which were affected by delay in projects.
“Whilst the operating environment faced by the group will remain challenging, the board expects that the group’s financial performance will continue to remain favourable and prospects for the year to be good,” it said.
The company said on Friday that its revenue for the quarter increased 3.57% to RM240.76 million from RM232.46 million in 2010.
Earnings per share for the quarter rose to 11.59 sen from 8.12 sen in 2010, while net assets per share was RM4.22.
CMSB’s net profit for the nine months ended Sept 30 rose to RM96.59 million from RM46.18 million in 2010, on the back of an increase in revenue to RM725.09 million from RM659.43 million.
Reviewing its performance, CMSB said its earnings continued to be mainly driven by its manufacturing division followed by the CONSTRUCTION [] & road maintenance and the construction materials divisions.
The manufacturing division, being the key driver and largest contributor to the group’s profitability, continued to achieve higher profit due to higher sales volume and an upward revision of prices, it said.
“All Divisions reported higher profits except for construction material and trading divisions which were affected by delay in projects.
“Whilst the operating environment faced by the group will remain challenging, the board expects that the group’s financial performance will continue to remain favourable and prospects for the year to be good,” it said.
IJM Corp 2Q earnings fall 35% to RM74.7m on-year on forex loss
KUALA LUMPUR (Nov 25): IJM Corp Bhd reported a fall of 35% in its earnings to RM74.77 million in the second quarter ended Sept 30, 2011 from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
It said on Friday, the forex losses were for the US dollar borrowings in the infrastructure division of RM32 million compared with unrealised forex gain of RM29 million a year ago.
The notes to the account showed the foreign exchange difference was RM20.04 million compared with a forex translation gain of RM14.49 million a year ago. Its tendering, selling and distribution expenses increased to RM34.12 million from RM24.34 million though administrative expenses declined to RM10.22 million from RM20.63 million a year ago.
However, the group’s property and industry divisions posted increased profits in tandem with higher revenues.
IJM Corp said its revenue rose 39.7% to RM1.097 billion from RM785.50 million while earnings per share were 5.45 sen compared with 8.55 sen. It declared an interim dividend of 4.0 sen a share, which was similar to a year ago.
For the first half, its earnings dipped 5.5% to RM189.81 million from RM200.87 million while its revenue increased 20.3% to RM2.131 billion from RM1.771 billion.
“The group’s profit before tax decreased by 1.6% mainly due to the forex translation loss of RM27 million in the current year compared to a gain of RM6 million in the previous year. However, the foreign exchange translation losses had been offset by the profits growth in industry and PLANTATION [] divisions,” it said.
On the prospects, IJM said the group’s CONSTRUCTION [] division’s performance was expected to improve as many of the group’s local projects are expected to gain momentum in the current financial year.
“Order book replenishment prospects remain encouraging. The group’s property division expects to sustain its performance in the current financial year on the back of strong unbilled sales in excess of RM1 billion,” it said.
IJM Corp said the group’s Industry division expected sales of building materials to increase in tandem with the expected growth in construction activity.
On the plantations division, it said assuming the current level of palm product prices would be sustained, it expected the plantation division to record a satisfactory level of profitability.
It added that its Malaysian tolling and port operations were expected to continue to provide steady revenue streams to the group’s Infrastructure division.
However, it cautioned that initial expensing of higher finance costs and amortisation of new toll concessions in India were expected to dampen its divisional results.
It said on Friday, the forex losses were for the US dollar borrowings in the infrastructure division of RM32 million compared with unrealised forex gain of RM29 million a year ago.
The notes to the account showed the foreign exchange difference was RM20.04 million compared with a forex translation gain of RM14.49 million a year ago. Its tendering, selling and distribution expenses increased to RM34.12 million from RM24.34 million though administrative expenses declined to RM10.22 million from RM20.63 million a year ago.
However, the group’s property and industry divisions posted increased profits in tandem with higher revenues.
IJM Corp said its revenue rose 39.7% to RM1.097 billion from RM785.50 million while earnings per share were 5.45 sen compared with 8.55 sen. It declared an interim dividend of 4.0 sen a share, which was similar to a year ago.
For the first half, its earnings dipped 5.5% to RM189.81 million from RM200.87 million while its revenue increased 20.3% to RM2.131 billion from RM1.771 billion.
“The group’s profit before tax decreased by 1.6% mainly due to the forex translation loss of RM27 million in the current year compared to a gain of RM6 million in the previous year. However, the foreign exchange translation losses had been offset by the profits growth in industry and PLANTATION [] divisions,” it said.
On the prospects, IJM said the group’s CONSTRUCTION [] division’s performance was expected to improve as many of the group’s local projects are expected to gain momentum in the current financial year.
“Order book replenishment prospects remain encouraging. The group’s property division expects to sustain its performance in the current financial year on the back of strong unbilled sales in excess of RM1 billion,” it said.
IJM Corp said the group’s Industry division expected sales of building materials to increase in tandem with the expected growth in construction activity.
On the plantations division, it said assuming the current level of palm product prices would be sustained, it expected the plantation division to record a satisfactory level of profitability.
It added that its Malaysian tolling and port operations were expected to continue to provide steady revenue streams to the group’s Infrastructure division.
However, it cautioned that initial expensing of higher finance costs and amortisation of new toll concessions in India were expected to dampen its divisional results.
MRCB 3Q earnings jump 191% to RM10.7m, boost from KL Sentra
KUALA LUMPUR (Nov 25): MALAYSIAN RESOURCES CORP []oration Bhd's net profit for the third quarter ended Sept 30, 2011 jumped 191% to RM10.72 million from RM3.68 million a year ago, due mainly to higher contribution from its revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
The company said on Friday that its revenue for the quarter grew 5.7% to RM286.35 million from RM270.91 million in 2010. Earnings per share rose to 0.77 sen from 0.27 sen, while net assets per share were 96 sen.
For the nine months ended Sept 30, MRCB’s net profit doubled to RM51.35 million from RM25.77 million in the previous corresponding period. Revenue jumped 107% to RM742.69 million from RM634.46 million.
It said KL Sentral Park was closing in 80% tenancy on total lettable area of about 515,000 sq. ft. and Q Sentral net floor area of approximately 1.0 million sq. ft. had achieved sales of over 60%.
The recent soft launch of the high-end residential condominium in Kuala Lumpur Sentral which is known as the Sentral Residences, received encouraging response with over 60% sale commitments, it said.
MRCB said the award of the over RM1.3 billion Ampang LRT extension line in August 2011 which was secured under competitive open tender bidding, provided a major boost to the group’s CONSTRUCTION [] order book.
“Accordingly, the Group hopes to secure more new works on the progressive roll-out of new works under the Economic Transformation Programme.
“Despite the strong momentum for the group’s property and construction projects, due to unforeseen delays in the progress and completion of certain construction projects, the board expects the group’s revenue and profitability growth are unlikely to meet the KPI targets set out in the beginning of the year,” it said.
The company said on Friday that its revenue for the quarter grew 5.7% to RM286.35 million from RM270.91 million in 2010. Earnings per share rose to 0.77 sen from 0.27 sen, while net assets per share were 96 sen.
For the nine months ended Sept 30, MRCB’s net profit doubled to RM51.35 million from RM25.77 million in the previous corresponding period. Revenue jumped 107% to RM742.69 million from RM634.46 million.
It said KL Sentral Park was closing in 80% tenancy on total lettable area of about 515,000 sq. ft. and Q Sentral net floor area of approximately 1.0 million sq. ft. had achieved sales of over 60%.
The recent soft launch of the high-end residential condominium in Kuala Lumpur Sentral which is known as the Sentral Residences, received encouraging response with over 60% sale commitments, it said.
MRCB said the award of the over RM1.3 billion Ampang LRT extension line in August 2011 which was secured under competitive open tender bidding, provided a major boost to the group’s CONSTRUCTION [] order book.
“Accordingly, the Group hopes to secure more new works on the progressive roll-out of new works under the Economic Transformation Programme.
“Despite the strong momentum for the group’s property and construction projects, due to unforeseen delays in the progress and completion of certain construction projects, the board expects the group’s revenue and profitability growth are unlikely to meet the KPI targets set out in the beginning of the year,” it said.
Market Commentary
The FBM KLCI index lost 16.44 points or 1.14% on Friday. The Finance Index fell 0.79% to 12783.58 points, the Properties Index dropped 0.36% to 942.7 points and the Plantation Index down 0.27% to 7608.73 points. The market traded within a range of 16.50 points between an intra-day high of 1447.11 and a low of 1430.61 during the session.
Actively traded stocks include SUMATEC, MUIIND, JCY-CD, SUMATEC-WA, COMPUGT, JCY, MACRO-WA, TIGER, MBFHLDG-WA and IRCB-WA. Trading volume increased to 1577.79 mil shares worth RM1098.36 mil as compared to Thursday’s 1499.44 mil shares worth RM1077.76 mil.
Leading Movers were AMMB (+8 sen to RM5.64), HLBANK (+22 sen to RM10.42), UMW (+13 sen to RM6.88), MAXIS (+5 sen to RM5.42) and PETDAG (+6 sen to RM16.42). Lagging Movers were AXIATA (-13 sen to RM4.83), GENTING (-26 sen to RM10.02), DIGI (-12 sen to RM3.54) and MISC (-33 sen to RM5.80). Market breadth was negative with 298 gainers as compared to 463 losers. -- JF Apex Securities Bhd
Actively traded stocks include SUMATEC, MUIIND, JCY-CD, SUMATEC-WA, COMPUGT, JCY, MACRO-WA, TIGER, MBFHLDG-WA and IRCB-WA. Trading volume increased to 1577.79 mil shares worth RM1098.36 mil as compared to Thursday’s 1499.44 mil shares worth RM1077.76 mil.
Leading Movers were AMMB (+8 sen to RM5.64), HLBANK (+22 sen to RM10.42), UMW (+13 sen to RM6.88), MAXIS (+5 sen to RM5.42) and PETDAG (+6 sen to RM16.42). Lagging Movers were AXIATA (-13 sen to RM4.83), GENTING (-26 sen to RM10.02), DIGI (-12 sen to RM3.54) and MISC (-33 sen to RM5.80). Market breadth was negative with 298 gainers as compared to 463 losers. -- JF Apex Securities Bhd
Maybank unveils new Kim Eng corporate identity
KUALA LUMPUR (Nov 24): Maybank Group has unveiled a new corporate identity for Kim Eng and announced a new management line-up, setting its aspiration to be the premier investment banking service provider in Asean by 2015.
This followed the completion of the S$1.79 billion acquisition of the securities and investment broking group earlier this year, a deal which was awarded the Best Deal in Singapore in The Asset Triple A Country Awards 2011.
In a statement on Thursday, Maybank said Kim Eng would be known as Maybank Kim Eng and would adopt the tiger symbol as its new corporate identity and embrace the yellow colour of group.
"It would also retain its corporate name for now in Singapore, Hong Kong, India and Indonesia, reflecting only the new symbol and colour, pending further regulatory approvals," it said.
Maybank has named the current chief executive officer (CEO) of Maybank Investment Bank, Tengku Datuk Zafrul Tengku Aziz, CEO of Maybank Kim Seng to oversee its global activities in 11 countries.
It has named Ronald Ooi executive advisor of Maybank Kim Seng and Tan Pei-San as head of international business to oversee the operations in
Philippines, Hong Kong, Vietnam, India, UK and US.
Maybank president/chief executive officer, Datuk Seri Abdul Wahid Omar, said this transaction was more than just the merging of two entities.
"Our strengthened position and significant footprint across the region, together with the talent and expertise of the new team will lead the expansion of our business.
"We will be able to complete aggressively and play a leading role in the regional capital markets," he said.
He said the anticipated synergies resulting from this transaction included cross-selling within the expanded client base, improved investment banking and underwriting capabilities and efficiencies in cash management support.
"Kim Eng can leverage on Maybank's balance sheet and also enjoy lower cost of funds, and following the acquisition, Maybank will have stronger regional network and access to the Thai market," he said.
Abdul Wahid said the Kim Eng acquisition was timely and strategic investment to steer its course for the investment banking arm to becoming a regional financial powerhouse. - Bernama
This followed the completion of the S$1.79 billion acquisition of the securities and investment broking group earlier this year, a deal which was awarded the Best Deal in Singapore in The Asset Triple A Country Awards 2011.
In a statement on Thursday, Maybank said Kim Eng would be known as Maybank Kim Eng and would adopt the tiger symbol as its new corporate identity and embrace the yellow colour of group.
"It would also retain its corporate name for now in Singapore, Hong Kong, India and Indonesia, reflecting only the new symbol and colour, pending further regulatory approvals," it said.
Maybank has named the current chief executive officer (CEO) of Maybank Investment Bank, Tengku Datuk Zafrul Tengku Aziz, CEO of Maybank Kim Seng to oversee its global activities in 11 countries.
It has named Ronald Ooi executive advisor of Maybank Kim Seng and Tan Pei-San as head of international business to oversee the operations in
Philippines, Hong Kong, Vietnam, India, UK and US.
Maybank president/chief executive officer, Datuk Seri Abdul Wahid Omar, said this transaction was more than just the merging of two entities.
"Our strengthened position and significant footprint across the region, together with the talent and expertise of the new team will lead the expansion of our business.
"We will be able to complete aggressively and play a leading role in the regional capital markets," he said.
He said the anticipated synergies resulting from this transaction included cross-selling within the expanded client base, improved investment banking and underwriting capabilities and efficiencies in cash management support.
"Kim Eng can leverage on Maybank's balance sheet and also enjoy lower cost of funds, and following the acquisition, Maybank will have stronger regional network and access to the Thai market," he said.
Abdul Wahid said the Kim Eng acquisition was timely and strategic investment to steer its course for the investment banking arm to becoming a regional financial powerhouse. - Bernama
S P Setia’s UK plans fall through
KUALA LUMPUR: S P Setia Bhd’s bid to lead a £5.5 billion (RM27 billion) redevelopment project in London came to a halt when lenders to the beleaguered project declined its preliminary offer.
In an announcement to Bursa Malaysia yesterday, S P Setia said the lenders to the Battersea Power Station development, located along the River Thames in South London, have decided not to engage further on its preliminary offer to take over the debts that amount to £300 million at this stage.
The debts of the Battersea Power Station project are held by Ireland’s National Asset Management Agency (Nama) and the Lloyds Banking Group. The debts were taken by Real Estate Opportunities (REO) and backed by a development project surrounding the decommissioned coal-fired power plant. It entailed building 3,400 homes, a conference centre, 10 million sq ft of offices and retail space at Battersea.
The £300 million of debt backing the stalled development project matured on Aug 31 without being repaid by REO, which has been courting investors.
On Nov 18, S P Setia made a conditional non-binding preliminary offer to acquire the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for £262 million.
The preliminary offer was conditional upon a satisfactory technical, environmental, financial, corporate, tax and legal due diligence and the results approved by the board and shareholders of S P Setia.
“The preliminary offer was made in the ordinary course of the group’s activities to seek out good opportunities in both local and selected international markets to expand its operations. S P Setia’s recent success in penetrating the competitive Australian property market with the launch of our Fulton Lane project in Melbourne’s central business district has given us the confidence to explore other strategic global cities,” it said.
Despite the setback, S P Setia firmly believes prospects in London are good and the group will continue to look out for and assess other possibilities to invest via strategic partnerships and landbanking opportunities.
Although S P Setia did not disclose the reasons for the lenders turning down the offer, The Daily Telegraph newspaper had previously reported that Nama and Lloyds were not happy with S P Setia’s offer given that the non-discounted value of the debt was £300 million.
Other offers are being sought, reported The Telegraph, which noted that Chelsea Football Club owner Roman Abramovich had shown interest in acquiring the site to build a stadium.
REO bought the 40-acre site in 2006 for £400 million with the purpose of developing the area into an integrated development centred around the iconic derelict power station.
Battersea Power Station was decommissioned in 1983 but is recognised as a building of special architectural or historic interest in the UK for its iconic four white-chimneys and as the largest brickwork structure in Europe.
Repurposing the disused power plant requires approval, which REO finally secured on Nov 11, 2010 from the Wandsworth Council after years of planning.
Had S P Setia been successful in acquiring the land, it would have had to raise £5.5 billion to develop the district in central London according to a pre-approved master plan.
The project would have created a huge presence for S P Setia, but an analyst pointed out that securing funding would have been a challenge in the current global conditions.
The master plan includes extending the London underground into the district to provide access and transforming the foundations of the power plant into a green-energy generation station.
“S P Setia already has a lot on its plate and has much recently acquired landbank. Perhaps it was for the best it did not undertake this ambitious project,” said a local analyst.
“Going into a foreign market is risky. Furthermore, while S P Setia has a good track record, it is with townships and not a development of this magnitude or in this market,” said the analyst.
The analyst pointed out that, “Since the deal has fallen through, S P Setia will probably be looking elsewhere to invest. Since it already has several projects underway locally, and given how it has been investing overseas, it would not come as a surprise if S P Setia continues expanding overseas.”
This article appeared in The Edge Financial Daily, November 25, 2011.
In an announcement to Bursa Malaysia yesterday, S P Setia said the lenders to the Battersea Power Station development, located along the River Thames in South London, have decided not to engage further on its preliminary offer to take over the debts that amount to £300 million at this stage.
The debts of the Battersea Power Station project are held by Ireland’s National Asset Management Agency (Nama) and the Lloyds Banking Group. The debts were taken by Real Estate Opportunities (REO) and backed by a development project surrounding the decommissioned coal-fired power plant. It entailed building 3,400 homes, a conference centre, 10 million sq ft of offices and retail space at Battersea.
The £300 million of debt backing the stalled development project matured on Aug 31 without being repaid by REO, which has been courting investors.
On Nov 18, S P Setia made a conditional non-binding preliminary offer to acquire the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for £262 million.
The preliminary offer was conditional upon a satisfactory technical, environmental, financial, corporate, tax and legal due diligence and the results approved by the board and shareholders of S P Setia.
“The preliminary offer was made in the ordinary course of the group’s activities to seek out good opportunities in both local and selected international markets to expand its operations. S P Setia’s recent success in penetrating the competitive Australian property market with the launch of our Fulton Lane project in Melbourne’s central business district has given us the confidence to explore other strategic global cities,” it said.
Despite the setback, S P Setia firmly believes prospects in London are good and the group will continue to look out for and assess other possibilities to invest via strategic partnerships and landbanking opportunities.
Although S P Setia did not disclose the reasons for the lenders turning down the offer, The Daily Telegraph newspaper had previously reported that Nama and Lloyds were not happy with S P Setia’s offer given that the non-discounted value of the debt was £300 million.
Other offers are being sought, reported The Telegraph, which noted that Chelsea Football Club owner Roman Abramovich had shown interest in acquiring the site to build a stadium.
REO bought the 40-acre site in 2006 for £400 million with the purpose of developing the area into an integrated development centred around the iconic derelict power station.
Battersea Power Station was decommissioned in 1983 but is recognised as a building of special architectural or historic interest in the UK for its iconic four white-chimneys and as the largest brickwork structure in Europe.
Repurposing the disused power plant requires approval, which REO finally secured on Nov 11, 2010 from the Wandsworth Council after years of planning.
Had S P Setia been successful in acquiring the land, it would have had to raise £5.5 billion to develop the district in central London according to a pre-approved master plan.
The project would have created a huge presence for S P Setia, but an analyst pointed out that securing funding would have been a challenge in the current global conditions.
The master plan includes extending the London underground into the district to provide access and transforming the foundations of the power plant into a green-energy generation station.
“S P Setia already has a lot on its plate and has much recently acquired landbank. Perhaps it was for the best it did not undertake this ambitious project,” said a local analyst.
“Going into a foreign market is risky. Furthermore, while S P Setia has a good track record, it is with townships and not a development of this magnitude or in this market,” said the analyst.
The analyst pointed out that, “Since the deal has fallen through, S P Setia will probably be looking elsewhere to invest. Since it already has several projects underway locally, and given how it has been investing overseas, it would not come as a surprise if S P Setia continues expanding overseas.”
This article appeared in The Edge Financial Daily, November 25, 2011.
Gas Malaysia listing delayed to 1Q12
KUALA LUMPUR: The listing of Gas Malaysia Bhd, originally planned for the current quarter, may be postponed to early next year as the company has yet to fulfill certain conditions set by the Securities Commission (SC), sources said.
The SC had on Oct 7 granted conditional approval for the proposed listing on the Main Market of Bursa Malaysia. Among the conditions is a requirement that the company executes a new gas supply agreement with Petroliam Nasional Bhd (Petronas).
Additionally, the terms and conditions of the new gas supply agreement must not have a material adverse impact on the operations and future profitability of Gas Malaysia.
“But an agreement has not been concluded with Petronas yet as the new agreement includes the provision for Gas Malaysia to set up a chain of petrol outlets to cater for vehicles utilising gas,” said a source.
According to a previous announcement by MMC Corp Bhd, one of the conditions stipulated by the SC is Gas Malaysia ensures that its petrol stations are not built on land that is not designated for the purpose and for the company to rectify any non-compliance within a year of SC’s approval.
MMC, which owns a 41.8% stake in Gas Malaysia, had said it was en route to list the subsidiary by year-end. This is dependent on fulfilling conditions set by the SC.
Towards this end, Gas Malaysia announced on Oct 19 that it had received the approval from the Economic Planning Unit for its listing, changes in shareholding structure and a proposed issuance of special redeemable preference shares to Petronas.
The company’s IPO comprises 333.84 million ordinary shares of 50 sen each. MMC officials had said the IPO could be set at RM2.20 per share.
“We think we are going to get that price for a few reasons, such as the company’s performance and by benchmarking it against other similar companies,” said an official at the MMC EGM on Oct 31.
The proposed listing of Gas Malaysia is one of the two IPOs to have received approvals from the SC in the second half this year.
iDimension Consolidated Bhd, which provides manufacturing software solutions, was listed on the ACE Market earlier this month. Its IPO consisted of 38.23 million new shares of 10 sen each, sold at an offer price of 38 sen, along with seven million shares via private placement. It had raised RM14.5 million from the exercise.
Following the listing, iDimension had announced a dividend and a bonus issue. Despite that, iDimension is trading at about 28 sen, lower than its IPO price.
This article appeared in The Edge Financial Daily, November 25, 2011.
The SC had on Oct 7 granted conditional approval for the proposed listing on the Main Market of Bursa Malaysia. Among the conditions is a requirement that the company executes a new gas supply agreement with Petroliam Nasional Bhd (Petronas).
Additionally, the terms and conditions of the new gas supply agreement must not have a material adverse impact on the operations and future profitability of Gas Malaysia.
“But an agreement has not been concluded with Petronas yet as the new agreement includes the provision for Gas Malaysia to set up a chain of petrol outlets to cater for vehicles utilising gas,” said a source.
According to a previous announcement by MMC Corp Bhd, one of the conditions stipulated by the SC is Gas Malaysia ensures that its petrol stations are not built on land that is not designated for the purpose and for the company to rectify any non-compliance within a year of SC’s approval.
MMC, which owns a 41.8% stake in Gas Malaysia, had said it was en route to list the subsidiary by year-end. This is dependent on fulfilling conditions set by the SC.
Towards this end, Gas Malaysia announced on Oct 19 that it had received the approval from the Economic Planning Unit for its listing, changes in shareholding structure and a proposed issuance of special redeemable preference shares to Petronas.
The company’s IPO comprises 333.84 million ordinary shares of 50 sen each. MMC officials had said the IPO could be set at RM2.20 per share.
“We think we are going to get that price for a few reasons, such as the company’s performance and by benchmarking it against other similar companies,” said an official at the MMC EGM on Oct 31.
The proposed listing of Gas Malaysia is one of the two IPOs to have received approvals from the SC in the second half this year.
iDimension Consolidated Bhd, which provides manufacturing software solutions, was listed on the ACE Market earlier this month. Its IPO consisted of 38.23 million new shares of 10 sen each, sold at an offer price of 38 sen, along with seven million shares via private placement. It had raised RM14.5 million from the exercise.
Following the listing, iDimension had announced a dividend and a bonus issue. Despite that, iDimension is trading at about 28 sen, lower than its IPO price.
This article appeared in The Edge Financial Daily, November 25, 2011.
Genting Malaysia acquires London’s Fox Poker Club
KUALA LUMPUR: Genting Malaysia Bhd has acquired Fox Poker Club Ltd through its subsidiary Genting Casinos UK Ltd for £7.75 million (RM38.26 million).
According to the announcement, the Fox Poker Club holds a casino premises licence and operates a poker club in Shaftsbury Avenue in central London. According to news reports, the club is London’s only fully licensed and dedicated poker club. It also offers an online poker service, as does Genting UK.
Genting UK intends to fund the purchase through internally generated funds. According to its website, Genting UK has 44 casinos across the UK under three brands — Circus, Maxims and Mint.
Genting Malaysia and parent Genting Bhd announced their 3QFY11 ended September results yesterday. Genting Malaysia saw its net profit for the quarter increase by 3.2% to RM347.1 million from RM336.4 million while revenue rose 92.6% for the same period to RM2.3 billion.
For 9MFY11, net profit rose to RM1.08 billion from RM914.5 million for the previous year’s corresponding period.
Genting Malaysia said its improved results came from construction revenue of Resorts World Casino New York City, its UK casino business and improving revenues from its Malaysian leisure and hospitality business.
Genting Malaysia said it remains cautious on the outlook for the leisure and hospitality industry due to uncertain global growth prospects. Genting Malaysia expects the Malaysian market to continue to contribute positively, and remains focused on growing its business in the UK and the US.
“As part of the destination resort master plan, the group also secured ownership of a prime freehold property called the Omni Centre located in downtown Miami, USA. The Omni Centre comprises a shopping mall, office space and a hotel,” said Genting Malaysia.
Genting Bhd saw its net profit for 3QFY11 decline by 22% year-on-year to RM597.2 million from RM765.9 million. Revenue for the period, however, rose to RM5.1 billion from RM3.9 billion. It should be noted that in the previous year’s corresponding quarter there were a couple of one-off items that included a net gain of RM413.6 million from the sale of Cairns Ltd to BP Global Investments Ltd, which offset an impairment loss of RM250.6 million during the same period.
On a cumulative basis, Genting’s net profit for 9MFY11 rose to RM2.1 billion from RM1.7 billion, while revenue rose to RM14.5 billion from RM11.1 billion.
Apart its gaming operation, Genting said it expects its power division to remain stable. Its plantation division will be primarily driven by the direction of palm products prices.
This article appeared in The Edge Financial Daily, November 25, 2011.
According to the announcement, the Fox Poker Club holds a casino premises licence and operates a poker club in Shaftsbury Avenue in central London. According to news reports, the club is London’s only fully licensed and dedicated poker club. It also offers an online poker service, as does Genting UK.
Genting UK intends to fund the purchase through internally generated funds. According to its website, Genting UK has 44 casinos across the UK under three brands — Circus, Maxims and Mint.
Genting Malaysia and parent Genting Bhd announced their 3QFY11 ended September results yesterday. Genting Malaysia saw its net profit for the quarter increase by 3.2% to RM347.1 million from RM336.4 million while revenue rose 92.6% for the same period to RM2.3 billion.
For 9MFY11, net profit rose to RM1.08 billion from RM914.5 million for the previous year’s corresponding period.
Genting Malaysia said its improved results came from construction revenue of Resorts World Casino New York City, its UK casino business and improving revenues from its Malaysian leisure and hospitality business.
Genting Malaysia said it remains cautious on the outlook for the leisure and hospitality industry due to uncertain global growth prospects. Genting Malaysia expects the Malaysian market to continue to contribute positively, and remains focused on growing its business in the UK and the US.
“As part of the destination resort master plan, the group also secured ownership of a prime freehold property called the Omni Centre located in downtown Miami, USA. The Omni Centre comprises a shopping mall, office space and a hotel,” said Genting Malaysia.
Genting Bhd saw its net profit for 3QFY11 decline by 22% year-on-year to RM597.2 million from RM765.9 million. Revenue for the period, however, rose to RM5.1 billion from RM3.9 billion. It should be noted that in the previous year’s corresponding quarter there were a couple of one-off items that included a net gain of RM413.6 million from the sale of Cairns Ltd to BP Global Investments Ltd, which offset an impairment loss of RM250.6 million during the same period.
On a cumulative basis, Genting’s net profit for 9MFY11 rose to RM2.1 billion from RM1.7 billion, while revenue rose to RM14.5 billion from RM11.1 billion.
Apart its gaming operation, Genting said it expects its power division to remain stable. Its plantation division will be primarily driven by the direction of palm products prices.
This article appeared in The Edge Financial Daily, November 25, 2011.
MISC exits liner ops, sees losses for FY11
KUALA LUMPUR: Petroliam Nasional Bhd-controlled shipping liner MISC Bhd is discontinuing its container shipping business that has lost US$789 million (RM2.52 billion) the past three years to better focus on serving clients in the energy sector.
The move, which came after a failed restructuring attempt since January last year, would cost MISC an additional US$400 million one-time loss. That would throw MISC into the red for FY11 ending Dec 31, but would benefit the group in the longer run, the company said in a statement yesterday.
Despite being Asia’s largest shipping line by market value, the group said its decision took into account the oversupply situation in the market that had driven down freight rates as well as the competition from companies with newer and larger vessels.
“Given MISC’s increasing focus on maritime and transportations solutions for the energy sector, the opportunity cost of MISC remaining in the liner (container shipping) business — with the expected larger demand of investment resources to stay relevant — has unfortunately reached an untenable position for the company,” MISC said.
It also expects to incur about US$30 million in costs for exiting the container shipping business, which will cease operations by end-June 2012. Following its exit of the liner business, MISC said it would terminate all related service and operation contracts, and dispose of its liner-related assets. According to its website, MISC currently has 31 container ships.
The cessation of the liner business will enable MISC to focus on its other businesses, such as the transportation of LNG and petroleum, offshore terminal services, marine and heavy engineering, integrated logistics, chemical shipping and maritime education.
“Our focus in recent years has been on providing maritime and transportation solutions for the energy sector, and thus, it is only natural that the bulk of our resources are dedicated towards growing our energy-based business segments,” its president and CEO Datuk Nasarudin Md Idris said.
MISC isn’t alone in feeling the heat. Denmark’s Maersk Line, Japan’s Mitsui OSK Lines Ltd and Hong Kong’s Evergreen Line all saw earnings hit by overcapacity and falling freight rates.
“For the past four years, the industry has seen freight prices plunging due to the oversupply of ships globally. While MISC’s exit from the liner business may hurt in the short term, it is a good decision for the long term as the group can refocus its resources on other businesses,” said an analyst.
Maersk Line, which holds about 16% of the global container market, lost US$297 million in the third quarter due to collapsing freight rates. It noted that average freight rates had declined 12% although shipping traffic rose 16%. It expects a full-year loss for its liner business.
Mitsui OSK Lines and Nippon Yusen KK also posted losses in their latest quarters and had cut container capacity. The two liners also reversed their full-year forecasts to losses.
The analyst said the overcapacity situation is expected to last into 2012, as there is a correlation between shipping volume and GDP growth.
MISC said net profit for the quarter ended Sept 30 fell 61.8% to RM140.96 million on a 15.2% decline in revenue to RM2.62 billion. MISC attributed the drop in profit to lower revenue to novation of certain heavy engineering projects to a jointly controlled entity, and lower contribution from its liner business.
Depressed aframax freight rates in the petroleum business, lower liftings in liner business and high bunker costs also hit earnings, it said.
Net profit for the six months ended Sept 30, fell 67.1% to RM262 million and revenue declined 11.5% to RM5.63 billion. The current financial year will only be a nine-month period, given the change in financial year-end from March 31 to Dec 31.
MISC, which was suspended at RM6.13 yesterday pending the announcement, has lost 26.67% of its value year-to-date. Trading resumes this morning.
This article appeared in The Edge Financial Daily, November 25, 2011.
The move, which came after a failed restructuring attempt since January last year, would cost MISC an additional US$400 million one-time loss. That would throw MISC into the red for FY11 ending Dec 31, but would benefit the group in the longer run, the company said in a statement yesterday.
Despite being Asia’s largest shipping line by market value, the group said its decision took into account the oversupply situation in the market that had driven down freight rates as well as the competition from companies with newer and larger vessels.
“Given MISC’s increasing focus on maritime and transportations solutions for the energy sector, the opportunity cost of MISC remaining in the liner (container shipping) business — with the expected larger demand of investment resources to stay relevant — has unfortunately reached an untenable position for the company,” MISC said.
While MISC’s exit from the liner business may hurt in the short term, it is a good decision for the long term.
It also expects to incur about US$30 million in costs for exiting the container shipping business, which will cease operations by end-June 2012. Following its exit of the liner business, MISC said it would terminate all related service and operation contracts, and dispose of its liner-related assets. According to its website, MISC currently has 31 container ships.
The cessation of the liner business will enable MISC to focus on its other businesses, such as the transportation of LNG and petroleum, offshore terminal services, marine and heavy engineering, integrated logistics, chemical shipping and maritime education.
“Our focus in recent years has been on providing maritime and transportation solutions for the energy sector, and thus, it is only natural that the bulk of our resources are dedicated towards growing our energy-based business segments,” its president and CEO Datuk Nasarudin Md Idris said.
MISC isn’t alone in feeling the heat. Denmark’s Maersk Line, Japan’s Mitsui OSK Lines Ltd and Hong Kong’s Evergreen Line all saw earnings hit by overcapacity and falling freight rates.
“For the past four years, the industry has seen freight prices plunging due to the oversupply of ships globally. While MISC’s exit from the liner business may hurt in the short term, it is a good decision for the long term as the group can refocus its resources on other businesses,” said an analyst.
Maersk Line, which holds about 16% of the global container market, lost US$297 million in the third quarter due to collapsing freight rates. It noted that average freight rates had declined 12% although shipping traffic rose 16%. It expects a full-year loss for its liner business.
Mitsui OSK Lines and Nippon Yusen KK also posted losses in their latest quarters and had cut container capacity. The two liners also reversed their full-year forecasts to losses.
The analyst said the overcapacity situation is expected to last into 2012, as there is a correlation between shipping volume and GDP growth.
MISC said net profit for the quarter ended Sept 30 fell 61.8% to RM140.96 million on a 15.2% decline in revenue to RM2.62 billion. MISC attributed the drop in profit to lower revenue to novation of certain heavy engineering projects to a jointly controlled entity, and lower contribution from its liner business.
Depressed aframax freight rates in the petroleum business, lower liftings in liner business and high bunker costs also hit earnings, it said.
Net profit for the six months ended Sept 30, fell 67.1% to RM262 million and revenue declined 11.5% to RM5.63 billion. The current financial year will only be a nine-month period, given the change in financial year-end from March 31 to Dec 31.
MISC, which was suspended at RM6.13 yesterday pending the announcement, has lost 26.67% of its value year-to-date. Trading resumes this morning.
This article appeared in The Edge Financial Daily, November 25, 2011.
Broadband boosts TM’s 3Q, profit hit by forex loss
KUALA LUMPUR: Strong take-up for its high-speed broadband (HSBB) service helped Telekom Malaysia Bhd’s (TM) topline for the third quarter ended Sept 30 grow 5.8% year-on-year to RM2.32 billion, but earnings were hit as carrying cost for its US dollar debt went up with a stronger greenback.
Net profit for 3QFY11 fell 31.1% to RM302.1 million from RM438.49 million, primarily due to a RM122.5 million unrealised foreign exchange (forex) loss on translation of its US dollar-denominated borrowings versus a RM139 million translated gain in the same quarter last year.
For the nine months ended Sept 30, net profit was down 26.5% to RM592.67 million, even as revenue rose 3.6% to RM6.7 billion, with the booking of a RM73 million forex translation loss on its borrowings compared to a RM319.5 million gain before.
Operational numbers were also distorted by the booking of a RM283.5 million one-off gain on disposal of its shares in Axiata Group Bhd in 3QFY11, more than the RM152.3 million gain it booked in 3QFY10 on the sale of Axiata and Measat Group Bhd shares.
In a statement yesterday, TM said its profits for 9MFY11 would have grown 21.3% to RM394.7 million from RM325.3 million a year ago excluding the one-off items. Similarly, normalised profits for 3QFY11 was RM137.3 million, up 8.8% y-o-y.
“We are encouraged by the continued steady progress this year in all aspects of performance and operations for all periods under review, stripping out exceptional items,” its group CEO Datuk Seri Zamzamzairani Mohd Isa said in a statement. “I’m pleased to note that our total return to shareholders continue to be above industry peer average at 31% for the nine-month period.”
No dividend was declared for the quarter, but TM noted that it was in a strong cash position with RM3.3 billion in the kitty. TM has committed to pay at least RM700 million or up to 90% of its profits to shareholders as dividend. TM had declared 9.8 sen per share dividend year-to-date, down from 13 sen per share the same period last year.
In notes accompanying its accounts, TM said broadband and data would continue to be its key growth area. Internet and multimedia services registered a higher revenue of 26.1% y-o-y to RM518.5 million, as a result of an increase in its broadband customers from 1.6 million to 1.7 million. Its HSBB offering UniFi had 164,375 customers in 3Q11, up 55,356 customers from 109,019 customers in 2Q11.
“TM will continue to strengthen its market leadership in HSBB, and is poised to close the year with more than 202,000 UniFi customers, while continuing to service 1.71 million Streamyx customers,” it said.
It is also on track to have a total of 78 exchange areas being served by UniFi, with 1.1 million premises passed by year-end. “As at Nov 21, we have activated more than 202,000 customers on the back of more than 1,096,000 premises passed,” TM said, adding that UniFi’s take-up far exceeds the 8% to 10% expected for the first two years.
“We saw the run rate increased to more than 18,000 customers a month on average in 3Q and today, we are seeing an average of over 23,000 new subscriptions per month,” it added.
TM aims to pass 1.3 million premises covering 95 exchange areas by end-2012. Its shares added 22 sen or 5.21% to RM4.44 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
Net profit for 3QFY11 fell 31.1% to RM302.1 million from RM438.49 million, primarily due to a RM122.5 million unrealised foreign exchange (forex) loss on translation of its US dollar-denominated borrowings versus a RM139 million translated gain in the same quarter last year.
For the nine months ended Sept 30, net profit was down 26.5% to RM592.67 million, even as revenue rose 3.6% to RM6.7 billion, with the booking of a RM73 million forex translation loss on its borrowings compared to a RM319.5 million gain before.
Operational numbers were also distorted by the booking of a RM283.5 million one-off gain on disposal of its shares in Axiata Group Bhd in 3QFY11, more than the RM152.3 million gain it booked in 3QFY10 on the sale of Axiata and Measat Group Bhd shares.
In a statement yesterday, TM said its profits for 9MFY11 would have grown 21.3% to RM394.7 million from RM325.3 million a year ago excluding the one-off items. Similarly, normalised profits for 3QFY11 was RM137.3 million, up 8.8% y-o-y.
“We are encouraged by the continued steady progress this year in all aspects of performance and operations for all periods under review, stripping out exceptional items,” its group CEO Datuk Seri Zamzamzairani Mohd Isa said in a statement. “I’m pleased to note that our total return to shareholders continue to be above industry peer average at 31% for the nine-month period.”
No dividend was declared for the quarter, but TM noted that it was in a strong cash position with RM3.3 billion in the kitty. TM has committed to pay at least RM700 million or up to 90% of its profits to shareholders as dividend. TM had declared 9.8 sen per share dividend year-to-date, down from 13 sen per share the same period last year.
In notes accompanying its accounts, TM said broadband and data would continue to be its key growth area. Internet and multimedia services registered a higher revenue of 26.1% y-o-y to RM518.5 million, as a result of an increase in its broadband customers from 1.6 million to 1.7 million. Its HSBB offering UniFi had 164,375 customers in 3Q11, up 55,356 customers from 109,019 customers in 2Q11.
“TM will continue to strengthen its market leadership in HSBB, and is poised to close the year with more than 202,000 UniFi customers, while continuing to service 1.71 million Streamyx customers,” it said.
It is also on track to have a total of 78 exchange areas being served by UniFi, with 1.1 million premises passed by year-end. “As at Nov 21, we have activated more than 202,000 customers on the back of more than 1,096,000 premises passed,” TM said, adding that UniFi’s take-up far exceeds the 8% to 10% expected for the first two years.
“We saw the run rate increased to more than 18,000 customers a month on average in 3Q and today, we are seeing an average of over 23,000 new subscriptions per month,” it added.
TM aims to pass 1.3 million premises covering 95 exchange areas by end-2012. Its shares added 22 sen or 5.21% to RM4.44 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
Dialog: Benalec not a rival
KUALA LUMPUR: Integrated oil and gas service provider Dialog Group Bhd does not think it will be affected by Benalec Holdings Bhd’s land reclamation project in south Johor.
“I don’t think [Benalec is a competitor] because we are different. We are very focused on our [oil terminal] project [in Pengerang], we don’t know what they are doing,” said Dialog executive chairman Ngau Boon Keat after the AGM and EGM yesterday.
“We have our own clients and we have our own purpose. We have taken about three years to get where we are. I mean the world is so big, anybody can do what they want to do,” he said.
On Nov 10, Benalec announced that it had secured the rights to reclaim two large tracts of land in south Johor — Tanjung Piai (3,485 acres) and Pengerang (1,760 acres).
Benalec said the reclamation is to facilitate the development of the petroleum and petrochemical hubs and maritime industrial parks situated on the Pengerang and Tanjung Piai coasts.
However, Dialog has begun the first phase of its 500-acre independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014, according to Ngau.
The terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
The terminal will be jointly developed by Dialog, Vopak Terminal Pengerang BV and the State Secretary of Johor Inc (SSJI). A joint venture company will be formed in which Dialog and Vopak will hold 90% equity interest with the rest held by SSJI.
Ngau said Dialog will mainly focus on the Pengerang project because of its size. He said the Pengerang Terminal is 10 times bigger than the Kertih Terminal — the first centralised tankage facility (CTF) project by Dialog — consisting of petrochemical tanks with storage capacity of 400,000 cubic metres.
The entire development of Pengerang Terminal will eventually support about five million cu m of storage capacity and will take about 10 years to fully develop.
On its ongoing expansion of tank terminals in Tanjung Langsat in Johor, Ngau said Dialog is promoting more investments in the project.
He said Dialog plans to start building Langsat Terminal Three after the completion of Langsat Terminal Two, which is expected to be concluded in December this year. Langsat Terminal One was completed in August.
Ngau said Dialog will continue to look for opportunities to complement its services, such as its purchase of a 51% stake in Anewa Engineering Pvt Ltd this year. Anewa is an outsourcing company which provides engineering design to customers, mainly multinational companies in India, the Middle East and Southeast Asia in the oil, gas and petrochemical industry.
On the weakening global economic environment, Ngau said Dialog will not be severely affected.
“Our business model does not depend on just building new plants or new investments. Our focus is on recurring income, such as from terminals, maintenance, and special product services — where oil prices do not matter,” he said.
He said recurring income accounts for about 80% of Dialog’s revenue.
Dialog recently posted a 34.5% increase in net profit for its 1QFY12 ended Sept 30. Net profit rose to RM44.54 million from RM33.09 million a year ago, while revenue increased 35% to RM355.2 million from RM263.08 million.
As at Sept 30, Dialog had cash reserves of RM215 million against RM123.4 million in short- and long-term borrowings, translating into a net cash position of RM91.6 million.
Dialog said the improved performance was due to higher contribution from its operations in Australia and New Zealand. The consolidation of Fitzroy Engineering Ltd, a fabrication and multi-discipline engineering company based in New Zealand, was also a major contributor to the increase, it said.
For FY11 ended June 30, Dialog posted a 28.7% increase in net profit to RM152.3 million from RM118.3 million, on a 6.1% increase in revenue to RM1.21 billion from RM1.14 billion a year ago.
Dialog closed one sen lower at RM2.40 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
“I don’t think [Benalec is a competitor] because we are different. We are very focused on our [oil terminal] project [in Pengerang], we don’t know what they are doing,” said Dialog executive chairman Ngau Boon Keat after the AGM and EGM yesterday.
“We have our own clients and we have our own purpose. We have taken about three years to get where we are. I mean the world is so big, anybody can do what they want to do,” he said.
On Nov 10, Benalec announced that it had secured the rights to reclaim two large tracts of land in south Johor — Tanjung Piai (3,485 acres) and Pengerang (1,760 acres).
Ngau: The world is so big, anybody can do what they
want to do.
want to do.
Benalec said the reclamation is to facilitate the development of the petroleum and petrochemical hubs and maritime industrial parks situated on the Pengerang and Tanjung Piai coasts.
However, Dialog has begun the first phase of its 500-acre independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014, according to Ngau.
The terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
The terminal will be jointly developed by Dialog, Vopak Terminal Pengerang BV and the State Secretary of Johor Inc (SSJI). A joint venture company will be formed in which Dialog and Vopak will hold 90% equity interest with the rest held by SSJI.
Ngau said Dialog will mainly focus on the Pengerang project because of its size. He said the Pengerang Terminal is 10 times bigger than the Kertih Terminal — the first centralised tankage facility (CTF) project by Dialog — consisting of petrochemical tanks with storage capacity of 400,000 cubic metres.
The entire development of Pengerang Terminal will eventually support about five million cu m of storage capacity and will take about 10 years to fully develop.
On its ongoing expansion of tank terminals in Tanjung Langsat in Johor, Ngau said Dialog is promoting more investments in the project.
He said Dialog plans to start building Langsat Terminal Three after the completion of Langsat Terminal Two, which is expected to be concluded in December this year. Langsat Terminal One was completed in August.
Ngau said Dialog will continue to look for opportunities to complement its services, such as its purchase of a 51% stake in Anewa Engineering Pvt Ltd this year. Anewa is an outsourcing company which provides engineering design to customers, mainly multinational companies in India, the Middle East and Southeast Asia in the oil, gas and petrochemical industry.
On the weakening global economic environment, Ngau said Dialog will not be severely affected.
“Our business model does not depend on just building new plants or new investments. Our focus is on recurring income, such as from terminals, maintenance, and special product services — where oil prices do not matter,” he said.
He said recurring income accounts for about 80% of Dialog’s revenue.
Dialog recently posted a 34.5% increase in net profit for its 1QFY12 ended Sept 30. Net profit rose to RM44.54 million from RM33.09 million a year ago, while revenue increased 35% to RM355.2 million from RM263.08 million.
As at Sept 30, Dialog had cash reserves of RM215 million against RM123.4 million in short- and long-term borrowings, translating into a net cash position of RM91.6 million.
Dialog said the improved performance was due to higher contribution from its operations in Australia and New Zealand. The consolidation of Fitzroy Engineering Ltd, a fabrication and multi-discipline engineering company based in New Zealand, was also a major contributor to the increase, it said.
For FY11 ended June 30, Dialog posted a 28.7% increase in net profit to RM152.3 million from RM118.3 million, on a 6.1% increase in revenue to RM1.21 billion from RM1.14 billion a year ago.
Dialog closed one sen lower at RM2.40 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
XL Axiata eyes RM4.9b from tower sale
KUALA LUMPUR: Axiata Group Bhd’s Indonesian subsidiary is looking to raise 14 trillion rupiah (RM4.9 billion) by selling 7,000 of its telecom towers next year, a top official was quoted as saying by the Jakarta media.
Goldman Sachs had been appointed to arrange the planned tower sale, Hasnul Suhaimi, president director of PT XL Axiata Tbk, was quoted as saying by the Jakarta Globe in a report on Wednesday.
“We are going to sell [the towers] anyway because we want to focus on our core business,” Hasnul reportedly said. “So far, no one has expressed interest.”
XL’s tower leasing business generated 700 billion rupiah in revenue in 2010, 4% of the total revenue for the year, according to the report. XL — the largest
contributor to Axiata’s earnings alongside Celcom Axiata Bhd — owns about 10,000 towers.
Hasnul reportedly expects XL’s revenue growth to slow to 7% this year or 18 trillion rupiah, down from 27% growth last year, citing market saturation. XL’s capital expenditure, however, is set to rise 20% next year to six trillion rupiah as the company prepares its network to handle more data usage, he said.
“The tower sale would be positive for XL as it would generate cash flow which can be used to finance expansion,” an analyst with Kim Eng Securities in Indonesia wrote in a note yesterday.
XL isn’t the only one looking at monetising its tower assets. The analyst said rival operator PT Indosat Tbk, too, had earlier this month signed a memorandum of understanding with Indonesian tower operator PT Tower Bersama Infrastructure Tbk for the sale of Indosat’s 4,000 towers.
The Kim Eng analyst also said the expected 14 trillion rupiah proceeds from XL’s planned exercise works out to about US$222,000 (RM7.1 million) per tower, “much higher” than the estimated US$125,000 per tower on Indosat’s planned tower sale. XL expects its subscriber base to reach 49.5 million by year-end from about 45 million currently.
In an interview with The Edge earlier this year, Axiata group CEO Datuk Seri Jamaludin Ibrahim said the group was open to disposing of its tower assets, if it could sell the tower leasing business at higher multiples than what the business is raking in for the company.
Axiata added 22 sen or 4.64% to close at its day-high of RM4.96 yesterday, while XL rose 0.54% to 4,625 rupiah. Axiata is set to release 3Q results on Nov 30.
This article appeared in The Edge Financial Daily, November 25, 2011.
Goldman Sachs had been appointed to arrange the planned tower sale, Hasnul Suhaimi, president director of PT XL Axiata Tbk, was quoted as saying by the Jakarta Globe in a report on Wednesday.
“We are going to sell [the towers] anyway because we want to focus on our core business,” Hasnul reportedly said. “So far, no one has expressed interest.”
XL’s tower leasing business generated 700 billion rupiah in revenue in 2010, 4% of the total revenue for the year, according to the report. XL — the largest
contributor to Axiata’s earnings alongside Celcom Axiata Bhd — owns about 10,000 towers.
Hasnul reportedly expects XL’s revenue growth to slow to 7% this year or 18 trillion rupiah, down from 27% growth last year, citing market saturation. XL’s capital expenditure, however, is set to rise 20% next year to six trillion rupiah as the company prepares its network to handle more data usage, he said.
“The tower sale would be positive for XL as it would generate cash flow which can be used to finance expansion,” an analyst with Kim Eng Securities in Indonesia wrote in a note yesterday.
XL isn’t the only one looking at monetising its tower assets. The analyst said rival operator PT Indosat Tbk, too, had earlier this month signed a memorandum of understanding with Indonesian tower operator PT Tower Bersama Infrastructure Tbk for the sale of Indosat’s 4,000 towers.
The Kim Eng analyst also said the expected 14 trillion rupiah proceeds from XL’s planned exercise works out to about US$222,000 (RM7.1 million) per tower, “much higher” than the estimated US$125,000 per tower on Indosat’s planned tower sale. XL expects its subscriber base to reach 49.5 million by year-end from about 45 million currently.
In an interview with The Edge earlier this year, Axiata group CEO Datuk Seri Jamaludin Ibrahim said the group was open to disposing of its tower assets, if it could sell the tower leasing business at higher multiples than what the business is raking in for the company.
Axiata added 22 sen or 4.64% to close at its day-high of RM4.96 yesterday, while XL rose 0.54% to 4,625 rupiah. Axiata is set to release 3Q results on Nov 30.
This article appeared in The Edge Financial Daily, November 25, 2011.
Dijaya chalks up 43% revenue jump
KUALA LUMPUR: Property developer Dijaya Bhd saw its revenue for 3QFY11 ended Sept 30 grow by 43.3% y-o-y to RM89.2 million from RM62.2 million, driven by strong sales and recognition of billings from its project launches.
However, the company booked a net loss of RM12.8 million for the quarter compared to a net profit of RM5.6 million for the previous year. This was due to a net loss of RM22.26 million arising from the fair value adjustments of marketable securities.
“Excluding this adjustment, the group registered a profit before tax of RM13.86 million for this quarter compared to RM8.66 million in the corresponding quarter last year,” explained Dijaya.
On a 9MFY11 basis, net profit rose to RM26.05 million compared to RM8.67 million for the previous year’s corresponding period. Revenue for the nine months rose to RM217.52 million from RM190.34 million.
According to Dijaya, its results were driven by higher profit margin contributions from its new property launches such as Tropicana Grande condominiums and Casa Tropicana final Block E condominium among others.
Going forward, Dijaya is planning to roll out projects in both the Klang Valley and Johor.
The group also recently signed a joint venture agreement with Ivory Properties Group Bhd for a mixed development with a gross development value (GDV) of RM10 billion in Bayan Mutiara, Penang.
“With the latest joint venture in the northern region, the group now owns a sizeable landbank worth RM28 billion in GDV spread across the main cities in Peninsular Malaysia to be launched in the near future. With all these projects in the pipeline, the group is poised for growth,” stated Dijaya’s group CEO Tan Sri Danny Tan.
This article appeared in The Edge Financial Daily, November 25, 2011.
However, the company booked a net loss of RM12.8 million for the quarter compared to a net profit of RM5.6 million for the previous year. This was due to a net loss of RM22.26 million arising from the fair value adjustments of marketable securities.
“Excluding this adjustment, the group registered a profit before tax of RM13.86 million for this quarter compared to RM8.66 million in the corresponding quarter last year,” explained Dijaya.
On a 9MFY11 basis, net profit rose to RM26.05 million compared to RM8.67 million for the previous year’s corresponding period. Revenue for the nine months rose to RM217.52 million from RM190.34 million.
According to Dijaya, its results were driven by higher profit margin contributions from its new property launches such as Tropicana Grande condominiums and Casa Tropicana final Block E condominium among others.
Going forward, Dijaya is planning to roll out projects in both the Klang Valley and Johor.
The group also recently signed a joint venture agreement with Ivory Properties Group Bhd for a mixed development with a gross development value (GDV) of RM10 billion in Bayan Mutiara, Penang.
“With the latest joint venture in the northern region, the group now owns a sizeable landbank worth RM28 billion in GDV spread across the main cities in Peninsular Malaysia to be launched in the near future. With all these projects in the pipeline, the group is poised for growth,” stated Dijaya’s group CEO Tan Sri Danny Tan.
This article appeared in The Edge Financial Daily, November 25, 2011.
Ann Joo commissions blast furnace, posts 3Q loss
KUALA LUMPUR: Ann Joo Resources Bhd has commissioned its RM650 million blast furnace in Seberang Perai, Penang, with an annual capacity of 500,000 tonnes.
In a filing with Bursa Malaysia yesterday, Ann Joo said it had successfully commissioned the blast furnace on Oct 16. Its group managing director Datuk Lim Hong Thye said the group is now working to optimise and stabilise the blast furnace operations, and the integration of iron and steel production.
The blast furnace is expected to save up to 40% of the group’s existing electricity consumption for its existing steelmaking plant. The group would also be able to switch between iron ore, coke and scrap as feed materials.
Ann Joo posted a net loss of RM24.5 million for the third quarter ended Sept 30 (3QFY11), compared to RM10.36 million net profit a year earlier, due to diminishing inventory value and foreign exchange losses. This was despite revenue rising 87% to RM625.2 million from RM333.9 million.
Ann Joo said the higher revenue was attributed to recovering international and domestic demand. However, it reported a net loss due to an allowance for diminution in value of inventories of RM38.93 million as a result of contracting steel prices. It also recognised a foreign exchange loss of RM22.5 million due to the weakening ringgit.
Moving forward, Ann Joo said steel prices were expected to go beyond cyclical downturn and remained cautious for 4QFY2011.
Ann Joo closed unchanged at RM1.98 yesterday with 225,000 shares done.
This article appeared in The Edge Financial Daily, November 25, 2011.
In a filing with Bursa Malaysia yesterday, Ann Joo said it had successfully commissioned the blast furnace on Oct 16. Its group managing director Datuk Lim Hong Thye said the group is now working to optimise and stabilise the blast furnace operations, and the integration of iron and steel production.
The blast furnace is expected to save up to 40% of the group’s existing electricity consumption for its existing steelmaking plant. The group would also be able to switch between iron ore, coke and scrap as feed materials.
Ann Joo posted a net loss of RM24.5 million for the third quarter ended Sept 30 (3QFY11), compared to RM10.36 million net profit a year earlier, due to diminishing inventory value and foreign exchange losses. This was despite revenue rising 87% to RM625.2 million from RM333.9 million.
Ann Joo said the higher revenue was attributed to recovering international and domestic demand. However, it reported a net loss due to an allowance for diminution in value of inventories of RM38.93 million as a result of contracting steel prices. It also recognised a foreign exchange loss of RM22.5 million due to the weakening ringgit.
Moving forward, Ann Joo said steel prices were expected to go beyond cyclical downturn and remained cautious for 4QFY2011.
Ann Joo closed unchanged at RM1.98 yesterday with 225,000 shares done.
This article appeared in The Edge Financial Daily, November 25, 2011.
Notion VTec says recovery from Thai floods intact
KUALA LUMPUR: Notion VTec Bhd is confident of making up for its earnings losses due the the floods in Thailand in the remaining quarters of FY12.
The company is optimistic because its two major customers, hard disk drive (HDD) manufacturers Seagate and Western Digital, are recovering well from the floods. Notion VTec supplies HDD components to both multinationals.
“We should be able to recover [our losses] over the next three quarters,” executive chairman Thoo Chow Fah told an analyst briefing yesterday.
In its announcement of its 4QFY11 ended September results two days ago, the company said revenue is expected to fall 45% in the current 1QFY12 ending Dec 31 from 4Q due to loss of sales and provision for losses arising from its plant in Thailand that was hit by the floods.
In tandem with the lower revenue, Notion is also likely to record a loss in 1QFY12.
The company said it will set aside RM3 million for the provisioning of submerged finished goods and RM2 million for the provision of replacement machinery.
Chow said the company is expecting a slower quarter after data showed its sales had slowed down to 11 million orders in October from the usual 20 million anticipated for the month.
He emphasised that the company’s earnings were less harmed by the impact of the floods on its own factories than by the effect on its major customers.
“Two of our major customers saw 70% of their plants affected, at this point in time we can [make] only 40% of the normal sales,” he said.
Despite the headwinds its major customers are facing, Notion’s factory in Klang is running at full capacity as it has new customers to cater for. The company found three new customers in 4Q.
“In the current environment, there is a shortage pf surface treatments and component supplies and because of this [HDD component makers] can command a premium of between 20% and 40%,” said Chow.
He added that the company may spend up to RM10 million this February to acquire used computer numerical control (CNC) machines to serve both its new and old customers when the latter recover, and projects a stronger demand for Notion next year.
However, he said it is “a balancing act” to serve existing customers and seek new ones.
“There is no shortage of business. We could gain new customers in the short term and command premium prices, but when our old customers recover we will need to have the capacity to meet their demand too,” he said.
He added that Notion may relocate its manufacturing operations if its major customers do so.
For FY12, Notion expects revenue to be flat year-on-year, but “this setback is only temporary, we have the financial resources to weather the storm and quickly get back on our feet”.
The company saw its net profit rise 23.3% to RM46.86 million in FY11 from RM38 million the year before, while revenue rose 5% to RM236.8 million from RM225.4 million. It had RM24.2 million in cash or cash equivalents as at end-September.
Revenue from its HDD segment fell 11.6% to RM83.9 million in FY11 from RM95 million the year before, while its camera segment saw revenue increase 24% to RM114.4 million from RM92.2 million.
Earnings from its auto and industrial segment remained at RM38 million.
Hong Leong Investment Bank expects Notion’s revenue to dip 2.3% to RM231.18 million in FY12 and its reported profit to fall 24% to RM35.69 million.
Hong Leong has a “hold” call on Notion and a target price of RM1.63 for the stock.
Shares of the company closed three sen higher at RM1.57 yesterday. It reached a two-year low of RM1.42 on Sept 29.
This article appeared in The Edge Financial Daily, November 25, 2011.
The company is optimistic because its two major customers, hard disk drive (HDD) manufacturers Seagate and Western Digital, are recovering well from the floods. Notion VTec supplies HDD components to both multinationals.
“We should be able to recover [our losses] over the next three quarters,” executive chairman Thoo Chow Fah told an analyst briefing yesterday.
In its announcement of its 4QFY11 ended September results two days ago, the company said revenue is expected to fall 45% in the current 1QFY12 ending Dec 31 from 4Q due to loss of sales and provision for losses arising from its plant in Thailand that was hit by the floods.
In tandem with the lower revenue, Notion is also likely to record a loss in 1QFY12.
The company said it will set aside RM3 million for the provisioning of submerged finished goods and RM2 million for the provision of replacement machinery.
Thoo: We have the financial resources to weather the storm and quickly get back on our feet.
Chow said the company is expecting a slower quarter after data showed its sales had slowed down to 11 million orders in October from the usual 20 million anticipated for the month.
He emphasised that the company’s earnings were less harmed by the impact of the floods on its own factories than by the effect on its major customers.
“Two of our major customers saw 70% of their plants affected, at this point in time we can [make] only 40% of the normal sales,” he said.
Despite the headwinds its major customers are facing, Notion’s factory in Klang is running at full capacity as it has new customers to cater for. The company found three new customers in 4Q.
“In the current environment, there is a shortage pf surface treatments and component supplies and because of this [HDD component makers] can command a premium of between 20% and 40%,” said Chow.
He added that the company may spend up to RM10 million this February to acquire used computer numerical control (CNC) machines to serve both its new and old customers when the latter recover, and projects a stronger demand for Notion next year.
However, he said it is “a balancing act” to serve existing customers and seek new ones.
“There is no shortage of business. We could gain new customers in the short term and command premium prices, but when our old customers recover we will need to have the capacity to meet their demand too,” he said.
He added that Notion may relocate its manufacturing operations if its major customers do so.
For FY12, Notion expects revenue to be flat year-on-year, but “this setback is only temporary, we have the financial resources to weather the storm and quickly get back on our feet”.
The company saw its net profit rise 23.3% to RM46.86 million in FY11 from RM38 million the year before, while revenue rose 5% to RM236.8 million from RM225.4 million. It had RM24.2 million in cash or cash equivalents as at end-September.
Revenue from its HDD segment fell 11.6% to RM83.9 million in FY11 from RM95 million the year before, while its camera segment saw revenue increase 24% to RM114.4 million from RM92.2 million.
Earnings from its auto and industrial segment remained at RM38 million.
Hong Leong Investment Bank expects Notion’s revenue to dip 2.3% to RM231.18 million in FY12 and its reported profit to fall 24% to RM35.69 million.
Hong Leong has a “hold” call on Notion and a target price of RM1.63 for the stock.
Shares of the company closed three sen higher at RM1.57 yesterday. It reached a two-year low of RM1.42 on Sept 29.
This article appeared in The Edge Financial Daily, November 25, 2011.
Ecofirst mulls venture into plantations
SUBANG JAYA: Ecofirst Consolidated Bhd is considering oil palm plantations in Indonesia as part of its future growth strategy.
CEO and executive director Datuk Tiong Kwing Hee said the group — with a diverse portfolio in property development and investment, construction and mining — may consider acquiring established or new plantation tracts within Indonesia’s Kalimantan, Sumatra or Java enclaves.
However, it is not a top priority at the moment. “It may happen or may not happen,” Tiong told The Edge Financial Daily after Ecofirst AGM yesterday.
He said the planned plantation venture will come “last” as it will be a capital-intensive business. Hence, the immediate priority is still property development, which has a faster turnaround time to generate the necessary cash flow to potentially finance the plantation aspiration.
Tiong said should Ecofirst acquire brownfield plantation assets or planted tracts, it may finance the purchase with cash and shares. This is to prevent Ecofirst from stretching its balance sheet further, he said. “Greenfield is cheaper. But in general, we need deep pockets to venture into plantations.”
Ecofirst’s substantial shareholders as at Sept 30 include Teoh Seng Kian (12.44%), Teoh Seng Aun (10.81%) and Purewise Sdn Bhd (7.4%).
The group’s intention to venture into oil palm plantation in Indonesia coincides with its plans to expand its mining operations there.
According to Tiong, Ecofirst which has existing iron ore mining operations in Kalimantan, plans to acquire more iron ore mines or tracts with other mineral reserves in Indonesia. He said the group could spend US$10 million (RM31.9 million) on each mine, including the cost of setting up a processing plant and other infrastructure.
In August 2010, Ecofirst signed a cooperation agreement with Indonesia-based CV Geo Mineral Resources (CV GMR) to undertake iron ore mining within Kalimantan’s Tanah Laut Regency enclave. Under the deal, CV GMR agreed to share 60% of the iron produced with Ecofirst.
“The prospects are very good,” Tiong said. This takes into account the cost of extracting, processing and transporting iron ore at US$50 a tonne in Indonesia where the commodity is traded at US$100 a tonne.
On the existing JV with CV GMR, Tiong said Ecofirst had forked out RM4 million to undertake mining operations in Kalimantan. He said the processing plant has been commissioned and the facility is undergoing tests. The plant is scheduled to begin operations during the financial year ending May 31, 2013 with an annual capacity of 500 tonnes for a start.
Tiong expects Ecofirst to register a higher net profit in the current year ending May 31, 2012, helped mainly by its property division.
Other than development activities, Ecofirst’s property division includes two retail malls — 1Segamat in Segamat, Johor and South City Plaza in Seri Kembangan, Selangor. Rentals from both malls will form a major source of recurring income for the group.
Tiong said the group, which develops properties in Ipoh, may also consider other parts of the country. He did not elaborate, only indicating that the company is looking at a gross profit of RM20 million to RM 30 million for each property project.
Despite Ecofirst having turned around its fortunes, Tiong said the group has no immediate plans to declare dividends as it needs the cash flow to sustain its earnings momentum.
“But I will still consider rewarding shareholders with dividends,” he said, adding that Ecofirst also has no immediate fundraising plans.
Ecofirst’s latest financials have improved. It posted a net profit of RM2.03 million or 0.31 sen per share in the first quarter ended Aug 31 this year versus a net loss of RM2.12 million a year ago, helped by income from its property division. Group revenue more than doubled to RM14.92 million from RM6.03 million previously.
Under Tiong’s stewardship, Ecofirst has leapt into the black with a net profit of RM8.8 million in the financial year ended May 31, 2011. This followed net losses in the preceding four fiscal years.
Tiong recalled it was tough when he assumed the CEO post in January 2009 as he did not know where to start on rejuvenating the group.
A crucial concern then was that the group’s operations could not sustain its debt level, which prompted Tiong to reorganise the borrowings in which loans from some lenders were fully settled while credit lines from two other banks were restructured.
“I have frozen all the borrowings of Ecofirst,” he said, indicating that cost planning and cost cutting would be crucial to rebuild the group’s financials.
As at Aug 31, Ecofirst had a net debt of RM129.94 million, which translated into a net gearing of 1.1 times based on its shareholders’ funds of RM119.4 million.
The stock closed at 18.5 sen yesterday, giving it a market value of RM120.3 million.
This article appeared in The Edge Financial Daily, November 25, 2011.
CEO and executive director Datuk Tiong Kwing Hee said the group — with a diverse portfolio in property development and investment, construction and mining — may consider acquiring established or new plantation tracts within Indonesia’s Kalimantan, Sumatra or Java enclaves.
However, it is not a top priority at the moment. “It may happen or may not happen,” Tiong told The Edge Financial Daily after Ecofirst AGM yesterday.
He said the planned plantation venture will come “last” as it will be a capital-intensive business. Hence, the immediate priority is still property development, which has a faster turnaround time to generate the necessary cash flow to potentially finance the plantation aspiration.
Tiong said should Ecofirst acquire brownfield plantation assets or planted tracts, it may finance the purchase with cash and shares. This is to prevent Ecofirst from stretching its balance sheet further, he said. “Greenfield is cheaper. But in general, we need deep pockets to venture into plantations.”
Ecofirst’s substantial shareholders as at Sept 30 include Teoh Seng Kian (12.44%), Teoh Seng Aun (10.81%) and Purewise Sdn Bhd (7.4%).
Tiong: We need deep pockets to venture into plantations.
The group’s intention to venture into oil palm plantation in Indonesia coincides with its plans to expand its mining operations there.
According to Tiong, Ecofirst which has existing iron ore mining operations in Kalimantan, plans to acquire more iron ore mines or tracts with other mineral reserves in Indonesia. He said the group could spend US$10 million (RM31.9 million) on each mine, including the cost of setting up a processing plant and other infrastructure.
In August 2010, Ecofirst signed a cooperation agreement with Indonesia-based CV Geo Mineral Resources (CV GMR) to undertake iron ore mining within Kalimantan’s Tanah Laut Regency enclave. Under the deal, CV GMR agreed to share 60% of the iron produced with Ecofirst.
“The prospects are very good,” Tiong said. This takes into account the cost of extracting, processing and transporting iron ore at US$50 a tonne in Indonesia where the commodity is traded at US$100 a tonne.
On the existing JV with CV GMR, Tiong said Ecofirst had forked out RM4 million to undertake mining operations in Kalimantan. He said the processing plant has been commissioned and the facility is undergoing tests. The plant is scheduled to begin operations during the financial year ending May 31, 2013 with an annual capacity of 500 tonnes for a start.
Tiong expects Ecofirst to register a higher net profit in the current year ending May 31, 2012, helped mainly by its property division.
Other than development activities, Ecofirst’s property division includes two retail malls — 1Segamat in Segamat, Johor and South City Plaza in Seri Kembangan, Selangor. Rentals from both malls will form a major source of recurring income for the group.
Tiong said the group, which develops properties in Ipoh, may also consider other parts of the country. He did not elaborate, only indicating that the company is looking at a gross profit of RM20 million to RM 30 million for each property project.
Despite Ecofirst having turned around its fortunes, Tiong said the group has no immediate plans to declare dividends as it needs the cash flow to sustain its earnings momentum.
“But I will still consider rewarding shareholders with dividends,” he said, adding that Ecofirst also has no immediate fundraising plans.
Ecofirst’s latest financials have improved. It posted a net profit of RM2.03 million or 0.31 sen per share in the first quarter ended Aug 31 this year versus a net loss of RM2.12 million a year ago, helped by income from its property division. Group revenue more than doubled to RM14.92 million from RM6.03 million previously.
Under Tiong’s stewardship, Ecofirst has leapt into the black with a net profit of RM8.8 million in the financial year ended May 31, 2011. This followed net losses in the preceding four fiscal years.
Tiong recalled it was tough when he assumed the CEO post in January 2009 as he did not know where to start on rejuvenating the group.
A crucial concern then was that the group’s operations could not sustain its debt level, which prompted Tiong to reorganise the borrowings in which loans from some lenders were fully settled while credit lines from two other banks were restructured.
“I have frozen all the borrowings of Ecofirst,” he said, indicating that cost planning and cost cutting would be crucial to rebuild the group’s financials.
As at Aug 31, Ecofirst had a net debt of RM129.94 million, which translated into a net gearing of 1.1 times based on its shareholders’ funds of RM119.4 million.
The stock closed at 18.5 sen yesterday, giving it a market value of RM120.3 million.
This article appeared in The Edge Financial Daily, November 25, 2011.
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