Boustead 9-month profit up 28.6%

Boustead Holdings Bhd posted an increase of 28.6 per cent in its unaudited after tax profit of RM501.8 million for its nine months to Sept 30, 2011 from RM390.2 million in the previous corresponding period.

Revenue for the nine months increased by 34 per cent to RM6 billion from RM4.49 billion in the previous corresponding period.

Earnings per share for the nine-month period was 44.5 sen compared with 35.3 sen the previous corresponding period.

For its third quarter, Boustead’s after-tax profit rose 15.81 per cent to RM144.3 million from RM124.6 million registered for the same quarter in the previous financial year. Pre-tax profit was RM167.1 million compared with RM153.7 million registered in the previous corresponding quarter.

Boustead's board of directors declared a dividend of 12 sen per share for the quarter under review, reflecting a total dividend payout of 30 sen per share for the nine-month period.

"The group is committed to ensure that we will maintain our dividend policy payout for the financial year.

"This will be all the more possible given our diversified nature where we are not solely dependent on one income stream and as such contributions from multiple streams of businesses will have a positive impact on the group’s bottom line," said deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin.

"We look to close the financial year on a positive note as we intend to work harder and channel our resources and energies to improve our bottom line and business prospects particularly from organic growth,” he said in a statement today.

For the nine-month period, the group’s plantation division delivered a strong profit of RM267 million compared with RM132 million previously amid higher prices for the commodity.

The property division delivered a profit of RM58 million for the period compared with RM49 million previously amid improved contribution from the segment in tandem with the progress of construction jobs.

The manufacturing and trading division delivered a profit of RM76 million with strong contribution from BHPetrol as a result of higher sales volume and stockholding gains.

Its pharmaceutical division registered a profit of RM51 million compared with RM14 million in the corresponding period last year due to higher sales revenue and better margins with improved productivity and prices.--Bernama



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KL shares lower at mid-afternoon

KUALA LUMPUR: Share prices on Bursa Malaysia were lower at mid-afternoon today, reflecting the gloomy sentiment in regional markets as lingering concerns about the impact of escalating eurozone debt crisis affected investor confidence, dealers said.

They said the bearish statement made by China's Vice Premier, Wang Qishan, that the global economic outlook remained grim, also affected the market.

As at 3.26pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.07 points to 1,441.37 after opening 2.64 points lower at 1,451.76.

The Finance Index lost 100.51 points to 12,888.28, Plantation Index shed 39.78 points to 7,574.86 and the Industrial Index declined 42.61 points to 2,630.57.

The FBM Emas Index slid 94 points to 9,891.55, FBM70 Index fell 102.931 points to 10,825.39, the FBM Top 100 Index dipped 88.64 points to 9,696.67 and the FBM ACE Index declined 65.67 points to 4,130.25.

Decliners led advancers by 630 to 118 while 207 counters were unchanged, 526 untraded and 26 others suspended.

Total volume stood at 911.6 million shares worth RM673.4 million.

For the actives, Compugates Holdings was unchanged at eight sen, Fast Track Solution was unchanged at 10.5 sen and DPS Resources slipped three sen to 19.5 sen.

Flonic Hi-Tech added three sen to 30 sen.

Among heavyweights, Maybank lost two sen to RM8.23, CIMB eased seven sen to RM6.80 and Sime Darby lost 10 sen to RM8.80.

RHB Capital, however, gained 12 sen to RM7.41. - Bernama



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CIMB Research maintains Outperform rating on Bumi Armada

KUALA LUMPUR (Nov 21): CIMB Research has maintained its Outperform rating on Bumi Armada Bhd at RM3.94 with a target price of RM4.61, and said that the company’s third quarter results released on Monday did not disappoint the research house though it undershot market expectations.

Bumi Armada’s net profit for the third quarter ended Sept 30, 2011 fell 7.5% to RM92.58 million from RM100.08 million a year, due mainly to its listing expenses in July this year.

The company said on Monday that revenue for the quarter rose to RM403.92 million from RM328.9 million in 2010.

For the nine months ended Sept 30, Bumi Armada’s net profit slipped to RM234.91 million from RM240.38 million in 2010, while revenue jumped to RM1.17 billion from RM870.22 million.

CIMB Research said on Monday that although Bumi Armada’s nine month-net profit made up 62% of its forecast, the research house considered it to be in line as it expects a much stronger 4Q and a record finish for FY11, thanks to the Apache and ONGC contracts.

“We continue to value Bumi at 17.6x CY13 P/E, a 40% premium over our CY13 target market P/E. Bumi remains an Outperform due to new FPSO contracts and marginal field works.

“It is now a component of the MSCI Malaysia Index,” said the research house.



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Jerneh Asia posts losses in Q3

Jerneh Asia Bhd posted a pre-tax loss of RM31,000 for the third quarter ended Sept 30, 2011 compared to pre-tax profit of RM5.65 million in the same quarter last year.

Revenue increased to RM42.87 million from RM25.93 million previously, the company said in a filing to Bursa Malaysia today.

Jerneh Asia said the pre-tax loss was mainly due to the poor performance in the equities market in the current quarter and the provision for losses in an associated company as a result of floods in Thailand. -- Bernama



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Axis REIT private placement of 75m units oversubscribed

KUALA LUMPUR (Nov 21): Axis-REIT’s proposed private placement of 75.18 million units has been oversubscribed by multiple times.

Axis REIT Managers Bhd, the management company, said on Monday the private placement represents 20% of the existing approved fund size of 375.90 million units and will increase the approved fund size to a maximum of 451.08 million units.

“The gross proceeds from the private placement which amounts to approximately RM184.20 million will be used to pare down the borrowings of Axis-REIT for the financial year to-date; lowering the gearing to 24%; providing Axis-REIT with sufficient headroom for more acquisitions,” it said.

The CEO of Axis REIT Managers, Stewart LaBrooy said the continuing interest in the Axis-REIT stock underlined the manager’s ongoing efforts to improve stock liquidity as well as, delivering improved distributions and increasing the size of the Trust through yield accretive acquisitions.

On completion of the placement and the conclusion of the latest acquisitions, Axis-REIT would have RM 1.39 billion in assets under management and a market capitalisation of over RM 1.15 billion. Trading of the new units is expected to start at 9am on Dec 7.



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Boustead 3Q net profit up 31.5% to RM120.9m

KUALA LUMPUR (Nov 21): BOUSTEAD HOLDINGS BHD [] net profit for the third quarter ended Sept 30, 2011 jumped 31.55% to RM120.90 million from RM91.9 million a year earlier, due mainly to higher sales volume and firmer palm product prices.

The company said on Monday that its revenue for the quarter rose 44.6% to RM2.19 billion from RM1.51 billion in 2010.

Earnings per share rose to 12.86 sen from 9.83 sen a year earlier, while net assets per share was RM4.63.

The company declared a third interim single tier dividend of 12 sen per share to be paid on Dec 30.

For the nine months ended Sept 30, Boustead’s net profit rose 27.3% to 418.3 million from RM328.6 million in 2010 while revenue jumped to RM6 billion from RM4.49 billion.

Reviewing its performance, Boustead said the higher sales volume had contributed toward the increase in revenue for its manufacturing and trading division, while the PLANTATION [] division was boosted by stronger palm product prices.

It said the first time consolidation of Pharmaniaga during the second quarter had also boosted revenue of its pharmaceutical division.

On its prospects, Boustead said on the overall, the group expected to register satisfactory results for the current financial year.

It said plantation’s earnings would very much be dependent on palm oil prices that were expect stay at attractive levels for the remainder of the year, and thus enable the division to deliver very strong earnings for FY2011.

It also said the negotiations for the contract to construct six naval vessels was progressing well and would have a positive effect on the earnings of the heavy industries division.

On its property division, Boustead said it was looking forward to stable recurring income from its portfolio of commercial and retail PROPERTIES [] and the expansion of the hotel operations.

Meanwhile, contributions from Pharmaniaga together with the improved performance from Boustead’s pharmaceutical manufacturing operation would augur well for the pharmaceutical division, it said.



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Mah Sing 3Q net profit up 45% to RM43.2m

KUALA LUMPUR (Nov 21): MAH SING GROUP BHD []’s earnings jumped 45.6% to RM43.22 million in the third quarter ended Sept 30, 2011 from RM29.67 million while up to Nov 15, its sales had exceeded RM2 billion.

It said on Monday that the performance was underpinned by strong sales which exceeded the RM2-billion mark as up to Nov 15, due to the strong branding and the flexibility afforded by its comprehensive portfolio of PROPERTIES [].

Mah Sing said revenue also recorded strong growth, up 48.4% to RM420.69 million from RM283.46 million while earnings per shares rose to 5.20 sen from 3.57 sen.

For the nine-month period, its earnings rose 47% to RM127.52 million from RM86.72 million in the previous corresponding period while its revenue increased by 41.6% to RM1.148 billion from RM810.82 million.

It said the revenue was underpinned by development activities in Kuala Lumpur, Klang Valley, Penang and Johor Baru

“Ongoing projects that contributed to revenue and profit include Garden Residence in Cyberjaya, Kinrara Residence in Puchong, Perdana Residence 2 in Selayang, MSuites in Jalan Ampang, One Legenda and Hijauan Residence in Cheras, Icon Residence in Mont' Kiara, Kemuning Residence in Shah Alam and Aman Perdana inMeru Shah Alam.”

Also contributing are commercial projects such as Southgate Commercial Centre in Sungai Besi, Star Parc Point inSetapak and industrial projects, i-Parc1 and i-Parc3 in Bukit Jelutong as well as i-Parc 2 in Shah Alam.

Projects in Penang Island, Residence@Southbay and Legenda@Southbay and in Johor Bahru, Sierra Perdana, Sri Pulai Perdana 2 and Austin Perdana also contributed to revenue and profit. The plastics division continued to contribute positively to the Group's performance,” it said.

“The group’s balance sheets remain healthy with net gearing ratio at 0.38 as at Sept 30, 2011,” it said.




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Jerneh Asia posts RM1.36m losses in 3Q

KUALA LUMPUR (Nov 21): JERNEH ASIA BHD [] posted net losses of RM1.36 million in the third quarter ended Sept 30, 2011 compared with net profit of RM21.33 million a year ago, mainly due to the poor equities market and provision for losses in an associate due to the severe floods in Thailand.

It said on Monday its revenue rose 65% to RM42.87 million from RM25.93 million. Its loss per share was 0.56 sen compared with earnings per share of 11.81 sen.

“The increase in revenue was mainly contributed by the sale of held-for-trading investments and interest income from the placement of proceeds from the disposal of Jerneh Insurance Bhd to an approved financial institution,” it said.

For the nine-month period, its earnings fell 77.1% to RM10 million from RM43.79 million in the previous corresponding period. Its revenue fell 156% to RM109.51 million from RM42.71 million.

Jerneh Asia said the group’s revenue for continuing operations for the period ended Sept 30 increased by RM66.79 million to RM109.51 million from RM42.72 million in the corresponding period in 2010.

The group recorded a profit before tax from continuing operations of RM13.92 million compared with RM13.34 million profit a year ago due to improved returns from the sale of held-for-trading investments.

When compared with the preceding quarter ended June 30, it recorded a loss before tax of RM310,000 compared to profit before tax of RM8.50 million in the preceding quarter. It said this was mainly due to the poor performance in the equities market in the current quarter and provision for losses in an associated company as a result of floods in Thailand.

To recap, on Oct 31, Jerneh Asia announced it had received a notice of voluntary conditional take-over offer from Kuok Brothers Sdn Bhd to acquire Jerneh Asia.



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