AirAsia revenue up, profit down

KUALA LUMPUR: AirAsia Bhd registered a lower pre-tax profit of RM456.41 million for the first nine months of 2011, compared to RM710.73 million during the same period last year.

Revenue for the three quarters, however, rose to RM3.2 billion from RM2.78 billion previously.

In a statement yesterday, the airline said its pre-tax profit for the third quarter ended September 30 2011, fell to RM108.5 million compared to RM310.34 million in the corresponding quarter last year.

Revenue for the three-month period grew to RM1.08 billion from RM979.71 million.

Commenting on the results, AirAsia chief executive officer Tan Sri Tony Fernandes said monetising its ancillary investment, which has always been one of AirAsia's key strategies allowing it to focus on its core competencies, had been fruitful.

"The Asian Aviation Centre of Excellence (a joint venture with CAE) recorded a net profit of RM6.2 million and AAE Travel (its jont venture with Expedia) recorded a net profit of RM14 million in the first quarter," he said. Both joint ventures were launched in July 2011. -- Bernama



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TIME dotCom next focus is Asia Pacific

SUBANG JAYA: TIME dotCom Bhd, which already has a strong presence in Southeast Asia, now plans to focus its business in the Asia Pacific market.

Executive director and chief executive officer Afzal Abdul Rahim said the company is now ready to go beyond the region equipped with its RM1 billion in assets.

"We will hit the international market and play with the big boys," Afzal told reporters here after the company's extraordinary general meeting.

TIME dotCom Bhd is the country's second largest fixed line telecommunications network and solutions provider after Telekom Malaysia Bhd.

It is a pioneer in fibre optic telecommunications technology, delivering data and non-data communication services to enterprise, corporate, government, wholesale and retail customers via its fibre optic network traversing Thailand to Singapore.

TIME dotCom had received minority shareholders approval on its RM339 million proposed acquisition of three companies.

Afzal said the group can now pursue its plan to become a regional player with the Asia Pacific market as its main focus.

The three companies are Global Transit Communications Sdn Bhd, which is a leading regional wholesale Internet service and backhaul provider, AIMS Group, a leading "carrier hotel" (a type of data centre) in Malaysia and Global Transit Entities, which hold internet licenses in Singapore and Hong Kong.

Upon completion by the first quarter 2012, the acquisitions will effectively position TIME dotCom into a regional telecommunications player.

This will see TIME dotCom moving up the telecommunications value chain giving it access and the capability to serve a multi-billion dollar market comprising the growing Indo-China, ASEAN and North Asian market where more than half of the world’s population resides and Internet demand is increasing.

TIME provides backhaul and wholesale bandwidth solutions to leading regional and global operators offering a full suite of telecommunication services, ranging from voice and data communications including high-speed broadband, Internet, satellite connectivity and managed services.

TIME was first to market fibre-to-the-home in Malaysia in early 2010.

Its signature product, TIME fibre broadband, now offers Malaysian home Internet users the fastest broadband connectivity in the country with speeds of up to 50Mbps.



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TSH aims to be major regional player

TSH Resources Bhd aims to become a regional plantation player in the next few years by expanding its planted hectarage specifically in Indonesia.

TSH chairman Datuk Dr Kelvin Tan Aik Pen said the company is on a solid financial footing and well positioned for strong earnings growth in the future.

“The company has a good story to tell and share with the public and investors as it is now doing very well and on its way of becoming a regional plantation player,” Aik Pen told Business Times in an interview recently.

TSH group managing director Datuk Tan Aik Sim said the company has a large unplanted area of about 60 per cent for expansion and plans to spend between RM100 million and RM120 million per year to expand its activities.


“We already have a sizeable landbank for expansion with high-yielding tissue culture to further boost productivity in the future. Our productivity will be further enhanced,” said Aik Sim.

TSH has total landbank of 98,996ha in Sabah and Indonesia. Out of the 98,996ha, a total of 38,784ha are already planted.
Aik Sim said 54 per cent of the company’s planted hectarage will mature next year which augurs well for the company as this translates to earnings growth.

The company has achieved a yield of about 30 tonnes of fresh fruit bunches (FFB) per hectare per year for its matured plantation in Sabah.

This is considered as productive and above average. The group foresees the current plantation in Indonesia to reproduce the results when they come to maturity.

"Earnings contribution from the plantation segment has increased from 95 per cent in 2010 to 98 per cent this year and will continue to be the main income driver for the company," said Aik Sim.

TSH also aims to have 85 per cent of its planted landbank made up of oil palm and the remaining rubber. This will be a good spread for both commodities.

The rubber plantations also provide the company a natural hedge in times when crude palm oil prices are not doing well.

The company owns seven mills in Sabah and Indonesia as well as a refinery jointly owned by TSH and Singapore's Wilmar group.

TSH also owns its own research and development arm, Wakuba TSH Biotech Sdn Bhd, which collaborates with the Malaysian Palm Oil Board to stay a step ahead of the industry with the aim of producing high quality ramets with high FFB and OER (oil extraction rate) yield supplying to its own estates and for sales to third parties.



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Lafarge pre-tax profit falls in 3rd quarter

Lafarge Malayan Cement Bhd has announced a drop in its pre-tax profit for the third quarter ended Sept 30, 2011 to RM97.214 million from RM102.142 million in the corresponding quarter last year.

In a filing with Bursa Malaysia Securities, it said the pre-tax profit for the third quarter was lower than the corresponding quarter of last year due to keen competition and higher production cost resulting mainly from the fuel and power price increase, although mitigated by the better performance of its associate company.

However, revenue rose to RM625.527 million from RM568.091 million, attributable to higher sales volumes in line with the domestic market growth as well as better export prices, it added. -- Bernama



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Stocks to watch: AirAsia, Mudajaya, Petra Energy, BDRB, PPB

KUALA LUMPUR (Nov 23): AIRASIA BHD [] could be in focus on Wednesday after it reported a weaker set of financial results following the impact of higher fuel expense and staff costs.

Other companies which could come under the radar of investors are MUDAJAYA GROUP BHD [], PETRA ENERGY BHD [], BANDAR RAYA DEVELOPMENTS BHD [] and PPB GROUP BHD [].

AirAsia’s earnings for the third quarter ended Sept 30, 2011 fell 53.46% to RM152.29 million from RM327.29 million a year earlier, due mainly to higher fuel expense and staff costs. Revenue for the quarter rose 9.87% to RM1.08 billion from RM979.71 million in 2010.

For the nine months ended Sept 30, the low-cost carrier’s net profit fell 42.89% to RM428.49 million from RM750.33 million in 2010, despite posting an increase in revenue to RM3.2 billion from RM2.78 billion.

Mudajaya’s net profit jumped 76% to RM63 million from RM46.54 million, aided by a currency translation gain of RM19.39 million compared with loss of RM14.95 million a year ago.

It said on Tuesday its revenue increased at the same pace, up 76.4% to RM337.21 million from RM191.15 million.

For the nine-month period, its earnings showed an increase of 8.7% to RM164.54 million from the RM151.36 million in the previous corresponding period. Revenue rose 43.3% to RM916.39 million from RM639.14 million.

Petra Energy Bhd posted net loss of RM13.68 million in the third quarter ended Sept 30, 2011, a contrast from the net profit of RM4.75 million a year ago mainly due to the additional recognition of losses in the onshore civil engineering services on completion of the Kumang project.

It said revenue was flat at RM158.59 million compared with RM158.94 million a year ago while loss per share was 7.02 sen compared with earnings per share of 2.44 sen.

BDRB posted net profit of RM28.40 million in the third quarter ended Sept 30 compared with net loss of RM745,000 a year ago due to better property development gross margins. Other positive factors were higher rental income and gain from disposal of the gourmet delicatessen and foodhall business in the property division.

In a separate development, BDRB said its major shareholder Ambang Sehati Sdn Bhd is mulling the possibility of increasing its stake in BDRB.

BDRB said during its board meeting on Tuesday, an Ambang Sehati representative informed that “it is exploring the possibility of increasing its stake in the company via various means, which may or may not result in a general offer”.

PPB’s earnings fell 20.3% to RM229.40 million in the third quarter ended Sept 30 from RM287.99 million a year mainly due to lower contribution from its associate, Wilmar International Ltd. PPB’s revenue rose 23.6% to RM710.26 million from RM574.53 million while earnings per share were 19.35 sen from 24.29 sen.

TIME ENGINEERING BHD [] posted net profit of RM89.70 million in the third quarter ended Sept 30, up 709% from RM11.08 million a year ago, boosted by a gain of RM91.92 million from the disposal of investment. Its revenue slipped 2.9% to RM15.44 million from RM15.91 million mainly due to reduction in the group’s system integration business.



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Ambang Sehati mulls increasing BRDB stake

KUALA LUMPUR (Nov 22): BANDAR RAYA DEVELOPMENTS BHD [] (BRDB) said its major shareholder Ambang Sehati Sdn Bhd is mulling the possibility of increasing its stake in BRDB.

BRDB said that during its board meeting on Tuesday, an Ambang Sehati representative informed that “it is exploring the possibility of increasing its stake in the company via various means, which may or may not result in a general offer”.

BRDB said Ambang Sehati had emphasised that this exercise was still at an evaluation stage.

BRDB also said it had decided to defer the tender exercise for the disposal of the assets to the first quarter of 2012. The deferment was due to the upcoming year-end holidays and Ambang Sehati’s intention to possibility raise its stake.

To recap, on Sept 5, Ambang Sehati - which owns 18.88% of BRDB - had proposed to acquire BRDB's four investment PROPERTIES [], namely CapSquare Retail Centre, Permas Jusco Mall, Bangsar Shopping Centre and Menara BRDB.

The four properties have a total net lettable area of 907,817 sq ft and a total carrying value RM942.4 million, according to BRDB's latest annual report.

Ambang Sehati's shareholders include BRDB chairman Datuk Mohamed Moiz JM Ali Moiz, Datuk Seri Akbar Khan Mohamed Khan and Abdul Sathar MSM Abdul Kadir.

On Sept 19, BRDB’s board accepted the offer from Ambang Sehati to acquire four of BRDB's investment assets for RM430 million net of liabilities of RM484 million. The plan was that after the proposed disposal, BRDB would distribute part of the proceeds to the shareholders via a net cash dividend of 80 sen per share.

However, on Sept 26, BRDB and Ambang Sehati announced they had mutually agreed to cease all negotiations and BRDB would look into the disposal of the relevant selected assets by way of a tender exercise, and Ambang Sehati will be invited to participate in the tender.

Subsequent to the aforesaid meeting, BRDB decided that it will appoint an independent international property valuation firm to manage the tender exercise.



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MMC unit’s RM300m debt raising plan for airport

KUALA LUMPUR (Nov 22): MMC CORPORATION BHD []’s unit Senai Airport Terminal Services Sdn Bhd (SATSSB) has undertaken a RM300 million Islamic medium term notes programme, with most of the funds to be used for the Senai Airport in Johor.

MMC said on Tuesday SATSSB had established the debt note programme which would have a tenure of 13 years from the date of first issuance. The first issuance of the debt notes was expected to be made by end November.

“The proceeds from the issuance of the IMTN programme will be utilised to finance, among others, the expenditure in relation to the development of Sultan Ismail International Airport, Johor Bahru (Senai Airport) and several contiguous pieces of freehold land situated at the southern fringe of the Senai Airport measuring approximately 2,718.68 acres into a cargo and logistics hub, high-tech industries park and mixed development known as Senai Airport City as well as for SATSSB’s working capital requirements,” it said.



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Petronas Chemicals posts net profit RM1.15b, declares 8c interim dividend

KUALA LUMPUR (Nov 22): Petronas Chemicals Group Bhd (PCB) posted net profit RM1.15 billion for the three months ended Sept 30, 2011 on the back of revenue RM4.664 billion, due mainly to higher product prices and unrealised foreign exchange gains.

It said on Tuesday that earnings per share for the quarter was 14 sen, while net assets per share was RM2.50.

The company declared an interim single tier dividend of 8 sen per ordinary share or RM640 million for the financial year ending Dec 31, 2011, to be paid on Dec 22.

For the six months ended Sept 30, PCG posted net profit RM1.89 billion on the back of revenue of RM7.98 billion.

Reviewing its performance, PCB said the growth in sales volume was led by olefins and derivatives business segment, which recorded plant utilisation of 97%.

However, it said the fertilisers and methanol business segment registered lower sales as the running of our methanol facility was limited by lower average daily gas supply.

Overall, the group’s plant utilisation of 84% remained at par with the corresponding quarter, it said.

On its prospects, PCB said that moving forward the results of its operations were expected to be primarily influenced by fluctuations in international petrochemical products prices, global economic conditions and utilisation rate of its production facilities.

The company said the start of the third quarter saw power supply interruption to Ethylene Malaysia Sdn Bhd, which limited its ethylene production for approximately two weeks.

PCB said the impact was minimised by leveraging on its integrated value chain.

“Consistent with previous periods, the olefins and derivatives segment will continue to be the key contributor to the group’s results.

“Subject to sufficient availability of methane gas supply, we expect that the results of our operations for the financial period ending Dec 31, 2011 to be satisfactory,” it said.

The company had on March 2, 2011 announced the change of financial year end from March 31 to Dec 31 beginning from April 2011.

As a result, there is no equivalent comparative quarters.



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