IGB, Affin Bank, MRCB, Gamuda, Hartalega, MAHB, Dialog, YTL Corp, AmBank, Astro, PPB, Hap Seng, DRB-Hicom, MyEG, Parkson, Mah Sing and RHB

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KUALA LUMPUR (May 31): Based on corporate announcements and news flow today, stocks in focus on Thursday (June 1) may include: IGB Bhd, Affin Bank Bhd, Malaysian Resources Corp Bhd, Gamuda Bhd, Hartalega Holdings Bhd, Malaysian Airports Holdings Bhd, Dialog Group Bhd, YTL Corp Bhd, AMMB Holdings Bhd, Astro Malaysia Holdings Bhd, PPB Group Bhd, Hap Seng Consolidated Bhd, DRB-Hicom Bhd, My EG Services Bhd, Parkson Holdings Bhd, Mah Sing Group Bhd and RHB Bank Bhd.

IGB Bhd's net profit more than halved to RM34.08 million in the first quarter ended March 31, 2018 (1QFY18) from RM73.17 million a year ago, dragged by losses from associates, absence of a one-off disposal gain and write-back of differed tax relating to the disposal.

This was despite quarterly revenue rising 4.49% to RM294.2 million, from RM281.55 million previously, amid higher contribution from the property investment — retail and property development divisions.

Affin Bank Bhd’s net profit rose 56.8% to RM141.47 million in 1QFY18 from RM90.23 million a year ago, mainly due to the increase in net fee and commission income, net gain on financial instruments, Islamic banking income and net interest income.

The improved quarterly earnings were also due to a write-back of credit impairment losses. Quarterly operating income also jumped 48% to RM476.62 million from RM322.03 million a year ago.

The signing of documents between Malaysian Resources Corp Bhd (MRCB) and Gamuda Bhd, which had secured a project delivery partner role for the Kuala Lumpur-Singapore High Speed Rail (HSR) project, will not take place tomorrow following the cancellation of the project.

The two companies said they received a letter today from MyHSR Corp informing them that following the cancellation of the HSR by the Malaysian government, all further negotiations on the articles of agreements, conditions of contract and annexures will be suspended.

Hartalega Holdings Bhd, Malaysian Airports Holdings Bhd (MAHB) and Dialog Group Bhd were added to the 30-stock FBM KLCI following the semi-annual review on the index today, edging out YTL Corp Bhd, AMMB Holdings Bhd (AmBank) and Astro Malaysia Holdings Bhd.

Meanwhile, the reserve list, which comprises the five highest-ranking non-constituents of the index by market capitalisation, consists of Fraser & Neave Holdings Bhd, Top Glove Corp Bhd, Lotte Chemical Titan Holding Bhd, Westports Holdings Bhd and AirAsia Group Bhd.

The constituent changes take effect on June 18.

PPB Group Bhd recorded a 44% decline in net profit for 1QFY18 to RM189.51 million from RM338.43 million a year ago due to lower contribution from its 18.5%-owned Wilmar International Ltd.

Quarterly revenue jumped 11.11% to RM1.15 billion, from RM1.03 billion.

PPB said the profit decline was also due to lower profit contribution from its grains and agribusiness, consumer products, and film exhibition and distribution segments.

Hap Seng Consolidated Bhd's net profit rose 2.6% to RM154.45 million in 1QFY18 from RM150.5 million a year ago on improved revenue contribution from all divisions except for the plantation division.

Quarterly revenue also climbed 29.8% to RM1.53 billion from RM1.18 billion a year ago.

The group declared a first interim dividend of 15 sen per share for the financial year ending Dec 31, 2018 (FY18), payable on June 28.

DRB-Hicom Bhd reported a lower net loss of RM10.26 million for the fourth quarter ended March 31, 2018, compared with RM329.57 million a year earlier, mainly due to the recognition of a research and development grant and better financial performance of operating companies.

For the full year, DRB-Hicom made a turnaround after three years of losses with a net profit of RM498.44 million. Full-year revenue rose 6.06% to RM12.79 billion compared with RM12.05 billion previously.

My EG Services Bhd's indirect subsidiary MYEG Auto Assist Sdn Bhd has teamed up with AIG Malaysia Insurance Bhd to provide road care assistance to AIG's policyholders.

MyEG said the two parties have entered into a two-year service agreement, which is expected to contribute positively to the earnings and net assets per share of the company for the financial years ending June 30, 2018 onwards.

AmBank is targeting loan growth of 6% for its 2019 financial year as it expects loans to small and medium enterprises (SMEs) and mid-sized corporate firms to continue seeing double digit growth.

The change in direction by government-linked companies could present better opportunities for SMEs and mid-caps now, said Datuk Sulaiman Mohd Tahir, Ambank group chief executive officer.

After four consecutive loss-making quarters, Parkson Holdings Bhd returned to the black with a net profit of RM25.3 million or 2.37 sen earnings per share for the third quarter ended March 31, 2018 on the back of its China retailing operations.

In the same period last year, it had made a net loss of RM33.24 million and loss per share of 3.11 sen.

However, Parkson’s quarterly revenue slipped 0.12% to RM1.061 billion from RM1.062 billion a year earlier.

Mah Sing Group Bhd's net profit for 1QFY18 fell 29% to RM64.2 million from RM90.4 million a year ago, due partly to slower progress of work during the festive season coupled with more projects focusing on affordable products and at their initial stages of construction.

Quarterly revenue was at RM584.76 million versus RM723.54 million a year ago.

RHB Bank Bhd reported its best-ever quarterly net profit of RM590.82 million  for 1QFY18, up 18.1% from RM500.28 million a year ago, largely driven by higher net fund based and non-fund based income, as well as lower allowance for expected credit losses.

Quarterly operating income increased 6.1% to RM2.78 billion from RM2.62 billion a year ago, while net fund-based income rose 13% year-on-year to RM1.23 billion.