Hap Seng group post strong full-year profit

KUALA LUMPUR: Hap Seng Consolidated Bhd posted a marginal year-on-year (y-o-y) increase in profit in its 4QFY11 results, while its listed plantation arm, Hap Seng Plantations Holdings Bhd saw a slight decrease, according to announcements made to Bursa Malaysia yesterday. Both companies chalked up strong double-digit growth in profit for FY11 ended Dec 31, sending their share prices to 52-week highs.

Hap Seng Consolidated posted a 20.6% y-o-y increase in its FY11 net profit, rising to RM493.13 million from RM409.05 million, with earnings per share of 18.85 sen. Hap Seng Plantations’ net profit grew 49.6%, from RM169.11 million to RM252.97 million, or 31.62 sen per share.

For 4QFY11, Hap Seng Consolidated posted a net profit of RM136.5 million, 4.28% y-o-y higher than its 4QFY10 net profit of RM130.89 million. On a quarter-on-quarter basis, net profit improved 49.75% from RM91.15 million in 3QFY11.

The diversified company’s 4Q revenue increased 20.2% to RM974.64 million from RM810.89 million. It attributed the higher revenue to growth in all divisions except for property, which posted a 10% y-o-y decline in revenue due to lower project sales due to the timing of completion of its existing projects in Sabah and Sarawak.

“Group operating profit for the current quarter at RM191.3 million was 4% higher y-o-y, with improved contributions from the property, credit financing and automotive divisions,” it said.

The group’s listed plantation arm, Hap Seng Plantations, posted net profit of RM53.07 million for the latest quarter, a 2.9% y-o-y decline from RM54.64 million last year, which it attributed to higher production costs. Its revenue increased marginally by 2.3% y-o-y to RM161.02 million from RM157.43 million.

Despite recording higher crude palm oil sales of 46,238 tonnes and higher CPO selling prices of RM2,977 per tonne compared with last year’s RM2,843 per tonne, the gains were affected by lower palm kernel sales. Both companies announced second interim dividends, 10 sen for Hap Seng Plantations and 4.7 sen for Hap Seng Consolidated.

Hap Seng Consolidated and Hap Seng Plantations each closed one sen higher at RM3.05 and RM1.68, respectively. Their trading volume stood at 985,400 shares and 1.5 million shares.


This article appeared in The Edge Financial Daily, February 15, 2012.



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KL shares lower at midday

Weighed down by losses in selected key heavyweights including Petronas Gas, Hong Leong Bank, Petronas Dagangan and British American Tobacco, the FTSE Bursa Malaysia KLCI (FBM KLCI) remained in the red at midday today, dealers said.

At 12.30pm, the benchmark index declined 6.59 points to 1,559.46, after opening 0.61 of a point better at 1,566.66.

Dealers said the subdued market sentiment over uncertainties in the eurozone, and the fourth quarter 2011 gross domestic product report to be released later today, continued to weigh in on trading.

Losers led gainers 374 to 303 on Bursa Malaysia while turnover amounted to 1.070 billion shares worth RM826.885 million.

The Finance Index declined 66.25 points to 13,836.45, the Industrial Index slipped 7.85 points to 2,904.25 and the Plantation Index dropped 28.2 points to 8,852.75.

The FBM Emas Index eased 35.18 points to 10,847.45, the FBM Ace Index slipped 18.84 points to 4,685.16 and the FBM Mid 70 Index inched down 3.570 to 12,369.69.

Volume leaders, Dialog Group-WA gained 30 sen to 34 sen, TSM Global added 14 sen to RM1.46 and Hap Seng Plantations rose 12 sen to RM3.17.

Among heavyweights, Maybank was unchanged at RM8.52, Sime Darby and CIMB each lost three sen to RM9.61 and RM7.28 respectively, while Petronas Chemicals slid two sen to RM6.96. -- Bernama



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CIMB Research maintains trading buy on Hap Seng Plantations at RM3.05

KUALA LUMPUR (Feb 15): CIMB Equities Research is maintaining its Trading Buy call on Hap Seng PLANTATION []s at RM3.05 and has a target price of RM3.27.

It said on Wednesday investors should discount Hap Seng Plantations’ 6% FY11 results shortfall and focus on its cheap ratings.

“It is the cheapest Malaysian planter in our universe, boasting an enterprise value per hectare that is below market price. We cut our FY12-13 EPS to account for higher replanting costs, which were one of the reasons for the results shortfall,” it said.

CIMB Research said it maintained its Trading Buy call and target price (based on 11.3 times price-to-earnings) as it believes that investors have overlooked the stock’s undemanding valuations and solid dividend yields.



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KLCI slips at mid-morning as regional rally takes a breather

KUALA LUMPUR (Jan 27): The FBM KLCI slipped at mid-morning on Friday, in line with the weaker sentiment at key regional bourses as markets took a breather from the recent rally.

At the global markets, a broad asset rally inspired by the US Federal Reserve's pledge to keep rates low paused on Friday, as investors sought to gauge how sustainable the burst of optimism will be while waiting for the outcome of crucial Greek debt talks, according to Reuters.

The FBM KLCI fell 3.74 points to 1,520.12 at 10am, weighed by losses at select blue chips.

Gainers edged losers by 235 to 205, while 252 counters traded unchanged. Volume was 538.98 million shares valued at RM369/81 million.

At the regional markets, Japan’s Nikkei 225 edged down 0.02% to 8,847.62 and South Korea’s Kospi shed 0.14% to 1,954.48, while Hong Kong’s Hang Seng Index added 0.24% to 20,487.90 and Singapore’s Straits Times Index gained 0.25% to 2,901.54.

BIMB Securities Research in a note Jan 27 said it was a mixed trading day on Wall Street on Thursday from a mixed batch of earnings and economic data in the US.

Lower new home sales, higher durable goods orders and higher jobless claims had all placed investors on an indecisive mode, it said.

As a consequence, the Dow Jones Industrial Average erased early gains to end the session 22 points lower, it said.

The research house said whilst negotiations in Athens are still ongoing, most European indices reversed their losses from the past few sessions to chalk up impressive gains possibly on a technical rebound.

As for Asia, equity performances remain strong with almost all closed on a high, it said.

“Locally, the FBM KLCI gained 4 points to close above the 1,520 mark with interests again centred on the lower liners and we expect the same for today.

“It is interesting to note that the MYR is gaining momentum against the greenback hovering at RM3.04/US$1 indicating that funds may be flowing back into the country again.

“Recent calls to overweight the PLANTATION [] sector are bearing fruits and our top calls are Hap Seng Plantations and TH Plantations which are still low on valuations,” it said.

Among the decliners on Bursa Malaysia, Genting Plantations fell 25 sen to RM9.40, TDM 13 sen to RM4.29, Fima Corp 12 sen to RM6.14, Hong Leong Industries nine sen to RM4.30, Public Bank eight sen to RM13.32, Kossan seven sen to RM3.40, while Aeon, Delloyd and Can-One fell six sen each to RM7.40, RM3.44 and RM2.03.

Gainers included IJM Corp, Scicom, Nestle, Hartalega, DRB-Hicom, AZRB, Amway, Shell and MISC, while the actives included TMS, Karyon, DBE Gurney, Jotech, UEM Land and DRB-Hicom.



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