KUALA LUMPUR (May 26): Based on corporate announcements and news flow today, companies in focus tomorrow (Wednesday, May 27) are: FGV, WZ Satu, Daya Materials, UMW Holdings, TDM, Bumi Armada, IJM Corp, Barakah, QL Resources, Dutch Lady, Sunway and Ire-Tex.
Felda Global Ventures Holdings Bhd (FGV), the world’s largest palm oil producer, saw its net profit plummet 97.5% to RM3.58 million or 0.1 sen per share, in the first quarter ended March 31, 2015 (1QFY15), compared with a net profit of RM143.63 million or 3.9 sen per share in 1QFY14.
The group blames the poor financial result on flash floods that affected half its plantations and weak crude palm oil (CPO) prices, which saw its revenue shrink 20.6% to RM2.96 billion in 1QFY15, as compared to RM3.73 billion in 1QFY14, its filing to Bursa Malaysia showed.
In a statement, FGV (fundamental: 1.55; valuation: 1.4) attributed the dismal earnings to low production of fresh fruit bunches (FFB) and the down trend in CPO prices that has hit most plantation-based industry players.
WZ Satu Bhd has been awarded a project worth RM499 million to construct part of the West Coast Expressway Section 9 mainline works from Kampung Lekir Interchange to Changkat Cermin Interchange.
In a filing with Bursa Malaysia, WZ Satu (fundamental: 1.7; valuation: 1.1) said its wholly-owned subsidiary, WZS KenKeong Sdn Bhd, has received a letter of award today from the works contractor, IJM Construction Sdn Bhd, for a total subcontract value of RM498.88 million.
The project will be undertaken by WZS KenKeong and Laksana Amanbina Sdn Bhd, through an unincoporated 80:20 joint venture.
The total length of the expressway to be constructed is 28km and is expected to be completed within 39 months. Its scope of works consists of construction of dual carriageways and associate works comprising interchanges, roads, river bridges, culverts and drains.
Oil and gas (O&G) services provider Daya Materials Bhd (fundamental: 0.55; valuation: 0.9), continues to be loss making in the first quarter ended March 31, 2015 (1QFY15), with a net loss of RM260,000 against a net profit of RM949,000 in 1QFY14.
In a filing with Bursa Malaysia, Daya Materials blamed the losses on lower vessel utilisation and declining spot rates of the offshore and upstream businesses, and lower profit margin generated from sales of polymers.
However, quarterly revenue surged 56.8% to RM202.77 million, from RM129.31 million, on improvements in its three business divisions: polymer, O&G and technical services.
UMW Holdings Bhd (fundamental: 2.2; valuation: 1.4) saw its net profit dipped 30% on-year to RM165.15 million or 14.4 sen in the first quarter ended March 31, 2015 (1QFY15), as compared to RM235.55 million or 20.16 sen previously, on lower revenue from its automotive, manufacturing and engineering segments.
Revenue declined 9.6% to RM3.24 billion in 1QFY15, as compared to RM3.58 billion in 1QFY14, its filing with Bursa Malaysia showed.
UMW Holdings said the automotive segment recorded lower revenue and profit as compared to 1QFY14, as Toyota core vehicle models faced stiff competition from new models launched by other players. The weakening of the ringgit had also unfavourably affected the segment’s profit.
The manufacturing and engineering segment recorded a lower revenue and profit due to lower sales by the autocomponent manufacturers, especially on the four wheelers products.
Its oil and gas segment’s revenue increased but profit was lower, mainly due to discounts on time charter rates, given to existing clients in view of the significant drop in oil price and the termination of contract of oil rig UMW NAGA 7 with Frontier Oil Corporation.
TDM Bhd registered a net loss of RM6.64 million for its first quarter ended March 31, 2015 (1QFY15), from a net profit of RM13.87 million in 1QFY14, on lower revenue from its plantation division.
Group revenue for the quarter shrunk 13.61% to RM75.5 million, from RM87.41 million a year ago, its filing to Bursa today showed.
TDM (fundamental: 1.45; valuation: 2.6) said the drop in revenue for the division was due to lower crude palm oil (CPO) and palm kernel (PK) production and prices, higher start-up losses in Indonesia, higher replanting/immature cost in its Malaysian operations, and provision for biological assets written off in its Malaysian operations.
Oil and gas (O&G) offshore oilfield services provider Bumi Armada Bhd (fundamental: 1.05; valuation: 0.85) announced its net profit for the first quarter ended March 31, 2015 (1QFY15) rose 11% to RM72.05 million or 1.23 sen per share, from RM64.78 million or 1.37 sen per share a year ago, on improved revenue.
Its revenue was at RM572.15 million, up 22% from RM468.92 million a year ago.
Segmentally, Bumi Armada’s floating production, storage and offloading (FPSO) division saw its segment profit improved 36.88%, while profit for its transport and installation (T&I) division soared 969.98%.
However, profit contribution from its offshore support vessel plunged 98.4% on lower utilisation of Class B vessels, due to challenging market conditions.
IJM Corp Bhd (fundamental: 1.1; valuation: 1.4) posted a net profit of RM98.27 million in the fourth quarter ended March 31, 2015 (4QFY15), more than ten times its RM8.24 million achieved a year earlier.
Quarterly revenue, however, dropped 12.6% to RM1.44 billion, from RM1.65 billion previously.
For the full financial year ended March 31 (FY15), the group posted a net profit of RM480.94 million, down 42% from RM829.6 million a year earlier.
IJM Corp told Bursa that the lower profit for FY15 was due to the one-off gains recorded in the preceding year, such as fair value gains and remeasurement gains on the acquisition of additional equity interests in CIDB Inventures Sdn Bhd, Swarna Tollway Sdn Bhd and Radiant Pillar Sdn Bhd and the capital gain on disposal of Kemaman port assets.
FY15 revenue fell 9.29% to RM5.45 billion, from RM6.01 billion a year ago, following a decrease in revenue from the construction division.
It also proposed a bonus issue of up to 1.79 billion new ordinary shares of RM1.00 each, on the basis of one bonus share for every one existing IJM share (1:1) held by entitled shareholders, to be credited at an entitlement date to be determined later.
In a separate statement, IJM Corp said the proposed bonus issue, to be completed by third quarter of this year, is to reward existing shareholders, while the larger capital base will allow for improved trading liquidity.
Barakah Offshore Petroleum Bhd saw its net profit surged 60.4% to RM15.12 million for its first quarter ended March 31 (1QFY15), backed by ongoing oil and gas service contracts.
The offshore service provider’s revenue also stood 126.2% higher at RM190.09 million, as compared to RM84.42 million a year earlier.
It told Bursa Malaysia that the increase in revenue was mainly due to the ongoing transportation and installation (T&I) projects, pipeline and commissioning services and also onshore engineering, procurement, construction and commissioning (EPCC) projects that were carried out during the first three months of the year.
Egg producer QL Resources Bhd (fundamental: 1.1; valuation: 1.1) announced its net profit for the fourth quarter ended March 31, 2015 (4QFY15) had jumped 21% to RM46.7 million or 3.74 sen per share, from RM38.61 million or 3.22 sen per share, on higher profit contribution from its integrated livestock farming and marine products, which surged 53% and 41% respectively.
Revenue rose 9% to RM661.59 million, from RM606.87 million in 1QFY14, boosted by sales of its marine product manufacturing, which increased 29% due to higher contribution from Indonesia's fishery, surimi-based products, as well as Sabah frozen seafood operations.
QL Resources declared a dividend of 4.25 sen per share.
For the full year ended March 31, 2015 (FY15), QL Resources reported a 19% increase in net profit to RM190.54 million or 15.27 sen per share, from RM159.93 million or 13.79 sen per share in FY14, on a 10% growth in revenue to RM2.7 billion, from RM2.46 billion a year ago.
Dutch Lady Milk Industries Bhd (fundamental: 2.1; valuation: 1.5) registered a 26.2% drop in net profit to RM17.03 million or 26.6 sen a share for its first quarter ended March 31, 2015 (1QFY15), from RM23.07 million or 36 sen a share a year ago, due to lower revenue and increased marketing investments to support the relaunch activities.
Revenue for the quarter fell 13.5% to RM196.89 million, from RM227.68 million in 1QFY14, due to the rundown of activities prior to the relaunch of its Dutch Lady Children Formula Milk.
In a filing with Bursa, it said the business environment is expected to remain competitive, against the backdrop of less robust consumer confidence.
Sunway Bhd (fundamental: 1.50; valuation:1.8) saw its net profit advanced 40.92% to RM146.54 million or 8.45 sen per share in its first quarter ended March 31, 2015 (1QFY15), from RM103.99 million or 6.03 sen per share last year.
The higher net profit was boosted by realised capital gains of RM22.9 million from the disposal of Sunway Hotel Georgetown and Wisma Sunway, and higher profit contributions from all the business segments, except its property development segment.
Revenue for the quarter was also strengthened by 3.41% to RM1.06 billion, from RM1.025 billion.
In a filing with Bursa Malaysia, Sunway said its property development segment reported lower revenue and profit for the quarter under review, “mainly due to slower progress billings from the local projects”.
Corrugated packaging services provider Ire-Tex Corp Bhd (fundamental: 0.85; valuation: 1.7) will be appointing an international adviser to probe into related-party transactions that invoked its auditor’s qualified opinion on the group’s financial statement for the year ended Dec 31, 2014 (FY14).
Group executive director Dr Jim Lai Chee Chuen told reporters that a board meeting will be held this Friday (May 29) and subsequently, an announcement will be made to Bursa on the name of the international adviser that the company is going to appoint to investigate the transactions involved.
Ire-Tex had on May 5, announced that its external auditor Messrs UHY had expressed a qualified opinion on the group's FY14 accounts.
Lai said the auditor's concern was mainly on the recoverability of money spent through its wholly-owned subsidiary, Zoomic Automation (M) Sdn Bhd.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)