KUALA LUMPUR (March 26): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, March 27) could be: MMC Corp, Gamuda, Kim Loong, Econpile, Eco World, Cahya Mata Sarawak, George Kent, Bina Puri and VS Industry.
Port owner and construction firm MMC Corp Bhd said listing of its unit Malakoff Corp Bhd has been granted an “approval-in-principle” by the Securities Commission Malaysia (SC).
In a filing on Bursa Malaysia this evening, MMC Corp (fundamental: 1.0 ; valuation: 2.4) said the SC has, vide its letter dated March 23, 2015, “granted its approval-in-principle for the registration of the listing prospectus of Malakoff”.
The initial public offering (IPO) of Malakoff Corp, Malaysia’s largest independent power producer, is expected to raise US$740 million or RM2.7 billion.
Gamuda Bhd’s net profit for the second quarter ended Jan 31, 2015 (2QFY15), increased 7.1% to RM182.18 million or 7.78 sen per share, from RM170.12 million or 7.41 sen per share a year ago.
Revenue for the current quarter grew 26.2% to RM653.24 million, from RM517.63 million in 2QFY14.
In a filing with Bursa Malaysia this evening, Gamuda (fundamental: 2.20; valuation: 1.50) said the increase in revenue and profit was “mainly due to additional stake in Kesas Sdn Bhd, the concession holder of Shah Alam Expressway”.
For the cumulative six months ended Jan 31, 2015 (6MFY15), Gamuda saw its net profit rise 9.7% to RM368.03 million or 15.78 sen per share, from RM335.60 million or 14.66 sen per share a year ago; while revenue went up 21.8% to RM1.22 billion, from RM1 billion in 6MFY14.
Plantation company Kim Loong Resources Bhd saw its net profit drop 31% to RM13.73 million or 4.42 sen per share for the fourth quarter ended Jan 31, 2015, from RM19.84 million or 6.42 sen per share a year earlier, on lower revenue from its plantation operations.
Revenue for the quarter fell 8% to RM181.21 million, from RM197.33 million a year earlier, the group’s filing to Bursa Malaysia today showed.
It also declared a final single-tier dividend of 6 sen per share in respect of the year ended Jan 31, 2015, to be paid on Aug 28, 2015.
“The lower revenue and profit for the current quarter, as compared to the corresponding quarter last year, was mainly due to lower production and FFB (fresh fruit bunch) price by 10% and 12% respectively. The low production in the current quarter was broadly in line with production trend nationwide,” said Kim Loong.
Its palm oil milling operations also saw a fall in profit and revenue for the quarter.
Econpile Holdings Bhd's wholly-owned unit Econpile (M) Sdn Bhd (EMSB) has received a letter of award from Flora Development Sdn Bhd to undertake earthworks, piling and basement structure works of a proposed mixed use development in Selangor.
The contract is valued at RM54.5 million and will be for a period of 18 months.
"The contract is the mainstream business of EMSB, and is expected to contribute positively to the revenue and earnings of Econpile for the financial year ending June 30 2015 and 2016," said the group in a filing with Bursa Malaysia this evening.
Eco World Development Group Bhd plans to launch property projects with a gross development value (GDV) of about £1.15 billion (approximately RM6.28 billion) in the UK, by the end of this year.
Eco World (fundamental: 0.5; valuation: 0.3) chairman Tan Sri Liew Kee Sin said the projects that will be launched are portions of the Embassy Gardens, the Arrowhead Quay and the London City Island.
He said all three projects will have different price points, to cater to customers with different investment needs.
Cahya Mata Sarawak Bhd (CMS) has purchased an additional 5% stake in the ferrosilicon and manganese alloys smelting project in Samalaju Industrial Park, for US$18.45 million.
In a statement, CMS (fundamental: 3; valuation: 1.5) said its wholly-owned subsidiary, Samalaju Industries Sdn Bhd (SISB), has entered into a share sale agreement with OM Materials (S) Pte Ltd (OMS) for the proposed stake purchase. The transfer is anticipated for completion by the end of this month.
Upon its successful completion, SISB’s effective interest in the Sarawak project will be 25% and OMS’ effective interest will be 75%.
Infrastructure engineering firm George Kent (Malaysia) Bhd’s net profit for the fourth financial quarter ended Jan 31, 2015 (4QFY15) has more than halved to RM8.28 million or 2.8 sen per share, from RM18.48 million or 6.2 sen per share a year ago, dragged by lower revenue from its engineering division.
Revenue was at RM117.23 million — down 48.32% from RM226.81 million that it saw in 4QFY14. The group recommends a 2.1 sen dividend for the quarter, its quarterly result filing to Bursa Malaysia today showed.
George Kent (fundamental: 2.1; valuation: 2.4) said revenue from its engineering division contracted by 61% to RM92.5 million, compared with RM235.72 million a year ago.
Engineering, the largest revenue contributor to the group, contributed 78.91% to George Kent’s total revenue 4QFY15 revenue.
George Kent said the weaker revenue was mainly due to the completion of the Pahang Selangor Raw Water Transfer project in 2QFY15, and the Panching Water Treatment Plant project in 4QFY14.
Bina Puri Holdings Bhd’s unbuilt order book has to date, grown to RM2.11 billion after the company received a letter of award from the Energy, Green Technology and Water Ministry, to undertake a sewerage treatment plant contract valued at RM291.16 million.
Bina Puri said its unit Bina Puri Sdn Bhd has accepted the letter of award, adding that the completion period was 18 months.
Bina Puri said it has secured RM419.66 million projects in 2015 with this award, and believes there would be more opportunities to secure further projects by year end.
It said the project was expected to contribute positively to its earnings for the financial year ending Dec 31, 2015.
VS Industry Bhd’s net profit has jumped 386.85% to RM18.3 million in its second quarter ended Jan 31 this year (2QFY15), lifted by higher sales and better sales mix contributed by its Malaysian operations.
Comparatively, VS Industry (fundamental: 1.10, valuation: 2.40) registered a net profit of RM3.76 million a year earlier. Revenue for the quarter under review came in 26.68% higher at RM465.38 million, from last year’s RM367.37 million.
Earnings per share grew in tandem with its improved results, increasing to 9.07 sen from 2.07 sen. The company has declared a second interim dividend of 3 sen per share, to be paid on May 15 this year.
Its half year ended Jan 31, 2015 net profit soared 301.8% to RM53.52 million, from RM13.32 million a year ago. Revenue for the period also grew 25.52% on-year to RM1.01 billion, from RM804.63 million previously.
(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.)