GEORGE TOWN (Aug 4): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, Aug 5) could include: MISC, PUC Founder, F&N, Alam Maritim, Hartalega, PetGas, Hibiscus, MAHB, Hunza, Xin Hwa and Teo Seng Capital.
Shipping giant MISC Bhd’s net profit for the second quarter ended June 30, 2015 (2QFY15) rose a little over 2.5 times to RM745.2 million, from RM288.08 million a year ago, mainly on higher revenue in petroleum and offshore businesses and lower operating costs from a smaller fleet of operating vessels in the chemical business.
Revenue for 2QFY15 was up a marginal 2.4% at RM2.6 billion, from RM2.54 billion a year ago, primarily on improved freight rates in its petroleum business, as well as revenue recognised from its engineering, procurement and construction (EPC) project in the current quarter.
Finance lease income contribution of a floating, production, storage and offloading (FPSO) unit, which commenced in Sept 2014, also uplifted revenue, its filing to Bursa Malaysia today showed.
The group declared a first interim dividend of 7.5 sen for the quarter — up 87.5% from 4 sen last year — which will be paid on Sept 2.
Year-to-date, MISC’s net profit rose 59% to RM1.23 billion, from RM774.48 million in 1HFY14; 1HFY15 revenue was up 5.4% at RM5.09 billion, from RM4.83 billion in 1HFY14, due primarily to the same reasons.
PUC Founder (MSC) Bhd is planning a renounceable rights issue of irredeemable convertible unsecured loan stocks (ICULS), along with free detachable warrants, to raise up to RM127.59 million, mainly to fund the construction of its solar photovoltaic (PV) plants.
In a filing with Bursa Malaysia today, PUC Founder said it intends to issue up to RM127.59 million nominal value of the ICULS, on the basis of two ICULS for each ordinary share held by entitled shareholders, on a date to be fixed later.
The ICULS has a tenure of three years, with a coupon rate of 4% on the nominal value per annum. They will be issued at 100% of the nominal value of five sen each.
PUC Founder has fixed the conversion price of the ICULS at 10 sen for one new share. The ICULS comes with free detachable warrants, on the basis of one warrant for every eight rights ICULS subscribed.
The warrant has a tenure of three years, and an indicative exercise price of 10 sen.
The bulk of the fund raised through the corporate exercise will be utilised as capital expenditure for the construction of its solar PV plants (up to RM105 million), followed by working capital (up to RM21.59 million) and defrayment of expenses incurred for the proposals (RM1 million).
Fraser & Neave Holdings Bhd (F&N) saw its third quarter ended June 30, 2015 (3QFY15)'s net profit rise 37.35% to RM82.93 million, from RM60.38 million a year ago, mainly driven by higher soft drinks and Thailand dairies’ sales.
Earnings per share (EPS) thus increased to 22.70 sen, from 16.50 sen.
F&N said in its filing to Bursa Malaysia that its soft drinks and Thailand dairies’ revenue both improved 13.8% and 21.2% respectively; its Malaysian dairies saw higher sales volume, but revenue declined by 5.7% on-year, as the group priced its products competitively in view of favourable global milk-based commodity costs.
F&N total revenue for 3QFY15 was RM1.08 billion, 10.82% higher than RM971.13 million in the previous corresponding quarter.
For the nine-month period (9MFY15), F&N posted a net profit of RM223.35 million, increased 13.24% from RM197.23 million; while revenue rose 7% to RM3.05 billion, against RM2.85 billion in 9MFY15.
EPS for the cumulative period improved to 61 sen, from 54 sen previously.
Alam Maritim Resources Bhd’s subsidiary, Workboat International DMCCO, has bagged a contract to charter out MV Setia Emas to Allianz Middle East Ship Management LLC (AMESM) for RM40.7 million for three years, with a two-year extension option.
In a filing with Bursa Malaysia, Alam Maritim said the charter party contract with AMESM, a company incorporated in United Arab Emirates, would contribute positively to its earnings and net tangible assets for the financial year ending Dec 31, 2015.
“The risks associated with the contract are mainly operational risks such as accidents and unexpected breakdown of equipment and delays due to human, mechanical and logistic factors, as well as weather condition.
“In mitigating such risks, the company will closely monitor all planned activities as per the project schedule and Alam Maritim adheres to the quality, health, safety and environment — integrated management system, in ensuring to continually deliver reasonable quality services.
“Further[more], Alam Maritim has developed a programmed maintenance schedule, which stringently adheres to the International Safety Management Standards in maintaining performance and seaworthiness of all vessels in our fleet,” it said.
The strong US dollar has helped glove maker, Hartalega Holdings Bhd, to mitigate the effect of lower average selling price caused by intensive competition.
Hartalega announced today that its net profit grew 9.8% for the first financial quarter ended June 30, 2015 (1QFY16) to RM62.68 million or 7.65 sen per share, from RM57.09 million or 7.55 sen per share in the previous corresponding quarter.
The rubber glove manufacturer’s quarterly revenue expanded to RM320.52 million, up 14.8% from RM279.2 million achieved a year ago. The higher revenue was attributed to the 15.4% increase in sales volume.
No dividend was proposed or declared for the current quarter under review. However, the board of directors has proposed a final single tier dividend of four sen per share, in respect of the financial year ended March 31, 2015 (FY15), to be paid on Sept 30.
On its prospects, Hartalega said the timing of the incoming next generation integrated glove manufacturing complex (NGC)’s capacity should sustain the group’s earnings.
Petronas Gas Bhd (PetGas) saw its net profit for the second financial quarter ended June 30, 2015 (2QFY15) surge 88% to RM818.05 million or 41.34 sen per share, from RM435.26 million or 22 sen last year, on lower tax expenses.
The natural gas supplier declared a second interim dividend of 14 sen for the financial year ending Dec 31, 2015, payable on Sept 11. The group declared a 20 sen dividend in last corresponding period. Year-to-date, the group has declared a total 28 sen dividend, as compared to 20 sen in 1HFY14.
In a filing with Bursa Malaysia today, PetGas noted its profit for the period increased by RM382.5 million, due to recognition of deferred tax assets (DTA) arising from investment tax allowance (ITA) granted for Plant Rejuvenation and Revamp (PRR).
"Excluding impact of DTA, profit for [the] quarter decreased by RM24.9 million or 5.7%," it added.
Quarterly revenue dropped 1.82% to RM1.08 billion, against RM1.1 billion last year, due to lower utilities revenue resulting from electricity tariff rebate.
Gulf Hibiscus Ltd, a wholly-owned subsidiary of Hibiscus Petroleum Bhd (Hibiscus), has been awarded the South East Ras El Ush concession (Block 2) in the southern Gulf of Suez, Egypt, by Ganoub El-Wadi Petroleum Holding Company — an entity of Egypt’s Ministry of Petroleum — for oil and gas exploration.
In a filing with Bursa Malaysia, Hibiscus said Gulf Hibiscus received the award after a successful bid by Gulf Hibiscus and its partner, Pacific Oil Ltd, for a joint equal ownership of the concession.
Pacific Oil, a special purpose vehicle registered in the Seychelles to pursue oil and gas, exploration and production opportunities predominantly in Africa, will be the operator of the concession, to leverage on its management team’s experience in Egypt, the filing read.
Hibiscus Petroleum said the award is subject to the execution of a definitive agreement, but Gulf Hibiscus’ financial exposure to undertake the minimum work commitment is estimated to be approximately US$8 million over the first four years (first exploration phase).
Malaysia Airports Holdings Bhd (MAHB) said the impact of AirAsia Bhd’s RM409 million demand for the losses the low cost carrier suffered in klia2, is unlikely to have any financial impact to the airport operator.
In an announcement to Bursa Malaysia, MAHB noted the amount represented less than 5% of its net assets as at June 30, 2015.
“The group is presently obtaining legal advice on the validity of AAB’s demand, its legal rights and remedies, including its right to set-off and/or counterclaim against AAB. Accordingly, the group will update Bursa in this regard,” it said.
MAHB (valuation: 1.4; fundamental: 0.8) added the group did not foresee any material impact to its operations, as a result of the demand.
“Subject to the legal advice from the group’s solicitors concerning the validity of AAB’s demand and its right to set-off and/or counterclaim, the estimated liability is the sum of RM409,438,603.94, excluding interest and legal costs,” it said of any expected losses arising from the letter of demand.
Khor Teng Tong Holdings Sdn Bhd, which controls 32.3% equity stake in Hunza Properties Bhd, has revised its offer price for the proposed privatisation of the Penang-based property firm to RM2.90 a share, from RM 2.50 previously.
In its filing with Bursa Malaysia today, Hunza said it had received a letter from Khor Teng Tong Holdings to revise the offer price for the proposed selective capital reduction and repayment (SCR) to RM2.90 for each existing Hunza share held by the entitled shareholders, or RM267.6 million in total, up from RM230.7 million previously.
The offer price of RM2.90 per share represents a 10.3% premium to Hunza’s prevailing market price of RM2.63. Hunza’s share price surged as much 13.3% to a high of RM 2.38 on April 2, following the news on the privatisation offer.
Newly-listed Xin Hwa Holdings Bhd has clinched two logistic contracts with a collective value of RM1.8 million from Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE).
In a filing with Bursa Malaysia today, the integrated logistic services provider said the two contracts were secured through its unit Xin Hwa Trading & Transport Sdn Bhd yesterday (Aug 3).
The first contract has an estimated value of RM1.2 million and Xin Hwa said it is for the transportation of spent copper slag from MMHE's yard to the site of the latter’s customers.
The second contract, awarded by MMHE subsidiary, Techno Indah Sdn Bhd (TEIN), is valued at RM600,000.
Poultry farming group Teo Seng Capital Bhd saw its second quarter ended June 30, 2015 (2QFY15)’s net profit decline 24.43% to RM7.27 million or 2.56 sen per share, against RM9.62 million or 4.81 sen per share a year ago, on higher operating expenses.
In its quarterly report to Bursa Malaysia, Teo Seng’s statement of comprehensive income shows despite a marginal improvement in its revenue, it was not sufficient to offset a 10.11% increase in operating cost.
Teo Seng’s revenue in 2QFY15 was RM90.61 million, up 0.93% on-year from RM89.77 million.
Cumulatively, the group’s first half of FY15 (1HFY15) recorded a net profit of RM24.76 million, up 24.5% from RM19.89 million last year; while revenue for the period came in at RM203.2 million — 14.9% higher than RM176.81 million in 1HFY14.
(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.)