KUALA LUMPUR (Jan 24): Based on corporate announcements and news flow today, the companies that may be in focus on Wednesday (Jan 25) could be the following: Tasco, Cypark, Tenaga Nasional Bhd, Capitaland, Caring Pharmacy, WZ Satu, Sasbadi, AirAsia X and Pharmaniaga.
Logistics firm Tasco Bhd is buying six leasehold tracts of land in Selangor's Pulau Indah and a 100% stake in cold storage firm Mils Gold Chain Logistics Sdn Bhd to expand its capacity.
In a statement to Bursa Malaysia today, Tasco said it is buying the tracts with a combined area of approximately 16 hectares (39.52 acres) for RM113.83 million, and the stake in Mils Gold Chain for RM29.93 million from Swift Integrated Logistics Sdn Bhd.
Tasco said it had signed the sale and purchase agreement with Swift Integrated for the land purchase. Both companies have also signed the share sale agreement for the Mils Gold Chain acquistion.
Integrated environmental engineering and technology provider Cypark Resources Bhd secured a contract worth RM15.19 million for a solid waste disposal project in Nilai, Negeri Sembilan.
In a filing with Bursa Malaysia today, Cypark said it received a letter of award dated Jan 18 from National Solid Waste Management Department in respect of a contract for the proposal to design, build and complete a solid waste disposal site in Pajam, Nilai.
The completion date of the project is April 3, 2018, which is 60 weeks from the date of site possession on Feb 7.
Tenaga Nasional Bhd's (TNB) net profit for the first financial quarter ended Nov 30, 2016 (1QFY17) dropped 11.9% to RM1.74 billion or 30.79 sen per share from RM1.98 billion or 35.01 sen per share a year ago due to the strengthening of the US dollar against the ringgit.
The utility group's 1QFY17 revenue, however, came in higher at RM11.24 billion amidst higher electricity consumption, up 5.3% from RM10.68 billion a year ago, according to a filing to Bursa Malaysia this evening.
TNB's sale of electricity was up 3%. Sales in peninsular Malaysia grew 3.5% compared with the last corresponding period.
Retail mall real estate investment trust (REIT) Capitaland Malaysia Mall Trust’s (CMMT) net property income for the fourth quarter of financial year ended Dec 31, 2016 (4QFY16) slipped by 0.3% to RM60.4 million from RM60.6 million in the corresponding quarter a year ago.
CMMT declared an income distribution per unit (DPU) of 4.23 sen per unit for the second half of 2016, which will go ex on Feb 7 and payable on Feb 28, according to the filing with Bursa Malaysia. The total DPU for the financial year ended Dec 31, 2016 (FY2016) is at 8.43 sen, giving it a yield of about 5.1% of its closing price of RM1.66 today.
The REIT’s revenue edged higher by 0.2% during the same period to RM93.5 million from RM93.3 million, mainly attributed to better performance from Gurney Plaza on the back of higher rental rates achieved from new and renewed leases.
Speaking at the financial result briefing today, Capitaland Malaysia Mall REIT Management Sdn Bhd’s (CMRM) chief executive officer Low Peck Chen said the REIT is reaping the full year contribution of the acquisition of Tropicana City Mall and Tropicana City Office Tower, as well as the fruits of its proactive retail management initiatives. CMRM is the manager of CMMT.
Following asset enhancement and efforts to refresh the tenant mix, Gurney Plaza and East Coast Mall registered NPI growth of 10% and 4.7% respectively, due to higher rental rates achieved from new and renewed leases.”
On CMMT’s prospect, Low shared that the management expects to maintain a sustainable NPI level as well as the DPU.
Pharmaceutical dispensary chain operator Caring Pharmacy Group Bhd's net profit jumped 44% to RM2.76 million, or 1.27 sen per share, in the second financial quarter ended Nov 30, 2016 (2QFY17), compared with RM1.91 million, or 0.88 sen per share, a year ago.
The company attributed the improved earnings mainly to higher sales in the quarter under review. Its revenue increased by 15% to RM113.86 million from RM98.28 million a year ago.
In a filing with Bursa Malaysia today, the group said the higher revenue was mainly contributed by higher sales generated from existing outlets due to low base effect as a result of weaker sale in the previous corresponding quarter, which was impacted by the implementation of the goods and services tax in April 2015.
For the half year ended Nov 30, 2016 (1HFY17), the group achieved a 19% increase in net profit of RM3.48 million against RM2.93 million a year ago. Revenue grew 18% to RM224.8 million from RM190.84 million a year ago.
On its prospects for the financial year ending May 31, 2017 (FY2017), the group said seeing that its customers remain cautious of spending amidst challenging economic conditions, it will carry out effective sales campaigns especially during the upcoming festive seasons and expect to bring in more revenue in the next quarter.
Construction and engineering firm WZ Satu Bhd almost doubled its net profit to RM8.5 million or 2.48 sen per share in the first quarter ended Nov 30, 2016 (1QFY17), from RM4.44 million in 1QFY16, in line with better performance of all its key subsidiaries.
Revenue rose 26.5% to RM130.17 million from RM102.88 million, the group said in a filing with the stock exchange.
Going forward, the group said its civil engineering and construction segment has a significant orderbook which will last for the next two to three years, adding that it is confident of securing more contracts.
It said the government’s infrastructure spending bodes well for WZ Satu, and that it is actively pursuing opportunities.
For the oil and gas segment, the group said it will remain vigilant in managing costs amid the challenging economic environment and operating conditions.
Education textbooks publisher Sasbadi Holdings Bhd's net profit for the first quarter ended Nov 30, 2016 (1QFY17) doubled to RM4.33 million or 1.55 sen per share from RM2.03 million or 0.8 sen per share a year ago.
The better profit was due mainly to an increase in revenue from its delivery of robotics sets and textbooks to schools under the Ministry of Education Malaysia.
According to a filing with Bursa Malaysia today, Sasbadi's 1QFY17 revenue rose to RM31.21 million from RM21.03 million a year ago.
The company said the increase in revenue was attributable to the commencement of operations of its subsidiary Mindtech Education Sdn Bhd from direct sales and network marketing of the group's products last year.
On its prospects, the group said it will continue to pursue organic growth in which it will continue to develop and introduce new print and online educational products and materials to the market.
AirAsia Bhd’s long haul low-cost carrier AirAsia X Bhd (AAX) has received clearance from the Federal Aviation Authority (FAA) to fly to the US.
In a statement today, AAX said it is the first Asian low-cost carrier to secure approval to operate scheduled passenger flights to the US.
The approval allows AAX to operate services to any destination within the US.
AAX said it is currently considering flights to several US states, including Hawaii, as part of its route expansion plans.
Malaysia largest pharmaceutical company Pharmaniaga Bhd expects more than 1,500 bids over the next two days under its latest tender exercise to facilitate the selection of medical-product suppliers to the Malaysian Government.
Pharmaniaga managing director Datuk Farshila Emran said the tender for 2017 to 2019 involves products listed in the Health Ministry's approved product purchase list (APPL).
"The APPL e-Tender is not a new exercise. We had done similar exercises every three years in the past; the last was in 2013. This exercise aims to provide a business avenue for pharmaceutical and non-pharmaceutical vendors to supply products required by the Government.
"We merely facilitate the process, but the selection process, such as product specifications and criteria for the tender, is up to the ministry," she said at a press conference on the e-Tender exercise.
Pharmaniaga is a 56.33%-owned subsidiary of diversfied-entity Boustead Holdings Bhd.