KUALA LUMPUR (No 21): Based on the corporate announcements and newsflow today, the following companies may be in focus next Monday (Nov 24): SKP Resources Bhd, Ibraco Bhd, 7-Eleven Malaysia Holdings Bhd, Coastal Contracts Bhd, Kuala Lumpur Kepong Bhd, Willowglen MSC Bhd, Pharmaniaga Bhd, Evergreen Fibreboard Bhd, Zelan Bhd, IOI Properties Group Bhd and Genting Bhd
SKP Resources Bhd's net profit rose 44.6% to RM10.53 million, or 1.17 sen per share, in its second quarter ended Sept 30, 2014 (2QFY14) from RM7.28 million or 0.81 sen per share in the previous corresponding period.
In a filing with Bursa Malaysia, the company attributed the better earnings to the different product mix during the period.
Quarterly revenue climbed 32% to RM140.25 million from RM106.15 million in the same quarter last year.
For the six months period ended Sept 30, 2014(1HFY14), SKP's net profit rose 22.9% to RM20.18 million versus RM16.42 million last year, while revenue grew 26.8% to RM271.99 million compared with RM214.45 million previously.
Going forward, SKP expects to remain profitable, driven by strong order books from existing customers which will contribute positively to group performance.
SKP was down half a sen or 0.68% to finish the Friday's trading day at 72.5 sen, giving rise to a market capitalisation of RM657 million.
Property development and construction firm Ibraco Bhd’’s net profit slid 64% for the third quarter ended Sept 30 (3QFY14) to RM8.6 million, compared with RM24.1 million a year ago.
Revenue declined 25% to RM48.6 million from RM65.2 million previously. The company has also declared a single-tier interim dividend of 10 sen per share.
For the nine-month cumulative period (9MFY14), the company's net profit fell 28% to RM20.7 million from RM28.9 million previously.
Revenue however increased to RM164 million, from RM116 million a year before.
On prospects, Ibraco said as its revenue almost came wholly from property development, its performance was highly impacted by any changes in raw material and labour costs, as well as demand for its properties.
"The group plans to launch more projects, comprising mainly residential and commercial properties, in 2014 and future years. The group monitors the market demand for our products and adopts a prudent approach with respect to any new projects," it said.
Ibraco share price closed three sen higher at RM1.82, with a market capitalisation of RM230.39 million.
7-Eleven Malaysia Holdings Bhd’s net profit slightly more than doubled to RM17.1 million in the third quarter ended Sept 30, 2014, from RM8.2 million in the previous corresponding quarter.
The company’s third quarter revenue grew 11.7% to RM487.3 million from RM436.4 million a year ago.
Higher revenue was driven by growth in new stores, improved merchandise mix and consumer promotion activity.
For the nine-month period, net profit leapt 34.3% to RM45.2 million from RM33.6 million in the same period last year, while revenue jumped 12.9% to RM1.41 billion from RM1.25 billion previously.
7-Eleven also attributed the larger revenue to growth in new stores, with same store sales growth of 4.5%. The company has 1,677 stores as at Sept 30, 2014.
7-Eleven will continue to roll-out new stores to increase the existing network as well as continue its on-going store refurbishment programme.
Its share price ended flat at RM1.65 today, giving it a market capitalisation of RM2.05 billion.
Offshore support vessel (OSV) fabricator Coastal Contracts Bhd saw its net profit jump 37.4% to RM54.3 million for the third financial quarter ended Sept 30, 2014 (3QFY14) from RM39.5 million a year ago, due to more favourable product mix which comprises higher-specification and higher-value OSVs.
Revenue for 3QFY14 grew 19.4% to RM232.4 million from RM194.7 million in 3QFY13. Earnings per share rose to 10.22 sen in 3QFY14 from 8.18 sen in 3QFY13.
“The group’s sturdy performance in 3QFY14 was largely spurred by scheduled upgrades and fleet renewals by asset owners, which are essential for ensuring continuity of production jobs as well as personnel safety,” said Coastal Contracts executive chairman Ng Chin Heng in a statement today.
“We recognise that dampened global oil prices may result in deferred capital expenditure by oil majors, potentially leading to a slower growth rate of newbuild OSVs. That said, we believe our long term growth prospects will remain underpinned by continued fleet renewal activity,” he added.
For the nine months period, the group's net profit rose 47.8% to RM151.7 million from RM102.6 million a year ago, while revenue grew 38% to RM699.5 million from RM506.6 million.
Earnings per share for 9MFY14 was higher at 29.35 sen against 21.25 sen a year ago.
Coastal Contracts’ total order book stood at RM2.5 billion as at Sept 30 this year. Of this total, shipbuilding or vessel sales orders constituted RM1.3 billion (to be delivered to customers up to 2015) and the remaining RM1.2 billion was for the construction and delivery of a gas compression service unit for Mexico’s national oil company Petróleos Mexicanos in the second half of 2015, together with a long term charter contract.
Meanwhile, the group is constructing two high-specification jack-up rigs equipped for harsh water environments, scheduled for delivery in the first and second half of 2015 respectively.
It is currently in discussions with several oil and gas players for a potential charter.
Coastal Contracts shares were up two sen or 0.58% to close at RM3.46 today, giving it a market capitalisation of RM1.84 billion. Its share prices have been on a downtrend since August after hitting a peak of RM5.40.
Kuala Lumpur Kepong Bhd (KLK), via its wholly-owned unit KL-Kepong Plantation Holdings Sdn Bhd, has entered into a conditional share sale agreement to acquire a 63% stake in PT Perindustrian Sawit Synergi for RM13.8 million.
“The proposed transaction is part of KLK’s expansion strategy of its palm oil downstream business in East Kalimantan, Indonesia,” said KLK in a filing with Bursa Malaysia.
The group expects to complete the transaction in the fourth quarter of 2015, subject to the fulfilment of all conditions in the agreement.
Willowglen MSC Bhd’s wholly-owned subsidiary has won an RM14.2 million contract from Singapore Power to install a security system.
Under the contract, the wholly-owned unit Willowglen Services Pte Ltd will supply and install an intruder detection system for distribution substations.
The contract, which commenced on Nov 14, 2014 this year, will be completed by Nov 13, 2016, said the security solutions provider in a statement to Bursa Malaysia.
The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2015 and 2016.
Willowglen share price was up one sen or 1.3% to 81 sen, translating to a market capitalisation of RM195.93 million.
Pharmaniaga Bhd's net profit for the third quarter ended Sept 30, 2014 (3QFY14), was RM 14.96 million, almost quadruple the RM3.75 million it recorded in the corresponding quarter last year, due to more favourable contributions from its operations.
Revenue grew nearly 14% to RM502.09 million in the 3QFY14 from RM440.81 million, the group's filing with Bursa Malaysia today showed.
Basic earnings per share (EPS) similarly improved to 5.78 sen in the quarter under review from 1.45 sen in the previous year.
Following the stronger financials, the generic pharmaceuticals manufacturer has declared a third interim dividend of 8 sen per share, up 5 sen from the 3 sen in 3QFY13.
The group said the higher provision for doubtful debt in 3QFY13 was another contributor to the better current quarter's bottom line.
As for the first nine months of financial year 2014 (9MFY14), net profit rose 66.2% on-year to RM 57.15 million from RM 34.39 million, while revenue was up 8.5% on-year to RM1.5 billion from RM 1.4 billion.
EPS for 9MFY14 was 22.07 sen, up 66.2% from 13.28 sen for the same period last year.
The company said its outlook remains positive as "the global economy [is] showing moderate but sustained expansion and the pharmaceutical sector in Malaysia [is] showing improved prospects".
Pharmaniaga closed flat at RM4.45 today, valuing the group at RM1.15 billion.
Evergreen Fibreboard Bhd, a leading medium density fibreboards (MDF) and particleboards in Asia, returned to the black due to lower input costs, after it had been in the red for seven consecutive financial quarters.
The MDF maker announced net profit of RM10.08 million, compared with net loss of RM8.13 million in the previous corresponding period. The company’s earnings were boosted by lower log and glue cost, according to its announcement to Bursa Malaysia.
Evergreen’s revenue came in slightly lower at RM234.49 million in 3QFY14, from RM233.98 million in 3QFY13, which the group attributed to a higher average selling price for its products.
Earnings per share (EPS) for 3QFY14 was at 1.96 sen per share, compared with loss per share of 1.59 sen in the previous corresponding quarter.
Third quarter’s earnings has helped to narrow the company’s accumulative losses for the nine months ended Sept 30, 2014 (9MFY14). It posted net loss of RM14.19 million, which was a 60.5% improvement to its net loss of RM36.03 million recorded in the previous corresponding period.
Revenue for 9MFY14 was up marginally by 0.5% to RM689.82 million, as compared to RM686.62 million a year ago, which the group attributed to the increase in average selling price of its MDF products.
Loss per share for the nine month period narrowed to 2.77 sen in 9MFY14, from 7.02 sen in the same period a year ago.
Evergreen share price dropped 0.5 sen to 54 sen, with a market capitalisation of RM277.01 million.
Engineering and construction firm Zelan Bhd continued with its streak of profitability in the third quarter ended Sept 30 (3QFY14) as the payment for its project in Abu Dhabi had started. In the quarter, it made a net profit of RM13.33 million, compared with the previous year’s net loss of RM6.22 million.
Revenue meanwhile, jumped 22.27% year-on-year to RM63.08 million. Zelan’s explanatory notes showed local projects’ revenue contribution inched up by 3.65% to RM59.7 million, while the Meena Plaza project in Abu Dhabi contributed RM3.2 million in this quarter, as opposed to a negative revenue of RM6.3 million last year.
Zelan’s filing with the stock exchange said the group’s return to the black was due to the higher gross profit of RM11.09 million, against the previous corresponding quarter’s RM8.31 million. This was due to a flow-through of higher revenue.
For the six months ended Sept 30, 2014 (6MFY14), Zelan made a net profit of RM25.903 million or 3.07 sen per share. In the previous corresponding period, it incurred a net loss of RM1.64 million or 0.29 sen per share.
It recorded revenue of RM124.104 million in 6MFY14, slightly higher from previous year’s RM122.32 million.
Zelan share price dropped one sen or 3.03% today, to end the week at 32 sen, with 2.31 million shares having changed hands. Zelan’s market capitalisation was RM278.82 million.
Property developer IOI Properties Group Bhd kick started its first quarter for financial year ended Jun 30, 2015 (1QFY15) with a 9% lower in net profit, mainly dragged by lower contributions from joint ventures and associates business, plus a higher interest expense.
In its quarterly report to Bursa Malaysia today, the group scored a net profit of RM101 million, in 1QFY15 versus RM111.06 million year-on-year; on the back of RM375.52 million in revenue, 33.82% higher from RM280.61 million in 1QFY14.
Such result decreased its earnings per share to RM3.12, 9% lower as well from RM3.43 a year ago.
Operating wise, IOI Properties registered an operating profit of RM150.1 million in 1QFY15, 12.6% higher than RM133.26 last year.
This was mainly contributed by property development segment, where RM124.3 million or 82.81% of total operating profit were derived from this business, which benefitted from higher contribution from sales of completed properties, and advanced progress works from high rise residential properties in 1QFY15.
IOI Properties down two sen or 0.81% to RM2.45 today, giving it a market capitalisation of RM7.94 billion.
Genting Bhd’s net profit in the third quarter ended Sept 30, 2014 (3QFY14), dropped 23.6% on-year to RM352.7 million from RM462.1 million, dragged down by its casino businesses in Malaysia and the US.
Its revenue for the quarter under review appears largely flat, increasing by only a marginal 0.45% on-year from RM4.48 billion to RM4.5 billion, its filing with Bursa Malaysia today showed.
Revenue for its plantation business declined by 2% on-year to RM274.1 million, though its power sector saw an almost four-fold growth in revenue to RM164.4 million.
The group’s property segment recorded a 99% increase in revenue to RM97.3 million mainly due to higher contribution from Genting Plantation Bhd, which had higher recognition of property sales and progressive completion of development projects during the quarter.
As for the oil and gas division, Genting saw a revenue of RM75.7 million.
For the quarter, basic earnings per share (EPS) showed a more visible decline of 24.1% from 12.51 sen to 9.49 sen. Unlike a year ago, the company declared no dividend for the quarter.
For the cumulative nine-month period (9MFY14), net profit fell 7.8% on-year to RM1.22 billion versus RM1.33 billion last year, though revenue was up 7% on-year to RM13.59 billion from RM12.71 billion.
Meanwhile,its 9MFY14 EPS stood at 32.91 sen, 8.3% lower than the 35.9 sen posted last year.
Genting closed at RM9.40 today, down 20 sen. This gives it a market capitalisation of RM34.95 billion.