KUALA LUMPUR (Aug 17): Based on corporate news flow and announcements today, stocks in focus tomorrow (Tuesday, Aug 18) could include: Affin, UEM Sunrise, Pharmaniaga, IJM, Genting, Ibraco, Century Logistics, KUB, Handal, Insas, Parkson and The Media Shoppe.

Affin Holdings Bhd’s net profit rose 29.8% to RM138.4 million or 7.17 sen per share for the second quarter ended June 30, 2015 (2QFY15), from RM107.4 million or 7.19 sen per share a year ago, largely on higher interest income. Revenue, however, declined 4.3% to RM447.1 million, from RM467.1 million last year.

For the six months (1HFY15), net profit dropped 32.2% to RM169.5 million or 8.72 sen a share, from RM250.1 million or 16.73 sen a share last year, mainly on higher allowance for loan impairment (net of recoveries), higher overhead expenses and lower net interest income.

Meanwhile, its 1HFY15 revenue increased 6.9% to RM896 million, against RM838.2 million last year.

The group’s after tax return on equity (ROE) and after tax return on assets (ROA) were 2.1% and 0.3% respectively, for the six months under review.

As at June 30, 2015, Affin (fundamental: 1.1; valuation: 2.25)’s loan to deposits ratio from customers (LD) was at 84.9%, while consumer deposits to total deposits ratio stood at 28.4%; gross impaired loan ratio stood at 2.04%, down eight basis points from 31 March 2015.

Property developer UEM Sunrise Bhd’s net profit for the second quarter ended June 30, 2015 (2QFY15) rose 12.6% to RM83.91 million or 1.85 sen per share, against RM74.53 million or 1.64 sen per share in 2QFY14, on improved property development margin and higher other income.

This was despite recording lower revenue in the current quarter under review by 16.83% to RM372.32 million, from RM447.64 million a year ago, primarily due to lower development revenue resulting from the completion of existing projects.

For the six months period (1HFY15), UEM Sunrise's (fundamental: 1.5; valuation: 2.6) net profit grew a marginal 0.74% to RM137.05 million or 3.02 sen per share, from RM136.05 million or 3 sen per share a year ago.

However, revenue fell 7% to RM789.76 million, from RM849.19 million in 1HFY14.

Pharmaceutical drugs manufacturer Pharmaniaga Bhd reported a 1.5% increase in net profit to RM16.22 million or 6.26 sen a share for the second quarter ended June 30, 2015 (2QFY15), versus RM15.98 million or 6.17 sen a share last year, on higher profit margins from the manufacturing division.

This was despite a 2.3% drop in revenue to RM512.85 million in 2QFY15, from RM525.07 last year, on lower sales in the concession segment.

Pharmaniaga (fundamental: 0.75; valuation: 1.7) also declared a second interim of 7 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Sept 15.

For the six months period (1HFY15), Pharmaniaga’s net profit also increased 13.8% to RM48.01 million, from RM42.19 million in 1HFY14, due to favourable profit margins from the manufacturing division, driven by reduced costs as a result of continuous efficiency improvement initiatives.

Revenue for 1HFY15 dropped by a marginal 0.91% to RM984.75 million, from RM993.744 million a year ago.

Norwegian sovereign fund, Government Pension Fund Global (GPFG), has excluded IJM Corp Bhd and Genting Bhd from its investment portfolio, due to risks of “severe environmental damage”.

Other than environmental damage, GPFG, the world’s top sovereign wealth fund, has a series of corporate’s conduct-based criteria as its investment guidelines, such as serious or systematic human rights violations, serious violations of the rights of individuals in situations of war or conflict, gross corruption, and other serious violations of fundamental ethical norms.

The fund, which has a market value of over US$871.71 billion (RM3.58 trillion), has to date excluded 67 companies. Six of them are Malaysian companies, including Genting and IJM Corp.

According to Bloomberg, as at end-2014, the fund held US$46 million (RM188.89 million) in IJM and US$40.8 million (RM167.54 million) in Genting.

Property developer Ibraco Bhd saw its rights issue oversubscribed by 47.5% or 24.06 million rights shares, over a total of 50.65 million rights shares available as at 5pm today.

The total proceeds received from the valid acceptances and excess applications amounted to RM74.71 million. The over-subscription monies totaling RM24.06 million, will be refunded in accordance with the procedures set out in the abridged prospectus.

Ibraco (fundamental: 1.9; valuation: 2.4) is undertaking a renounceable rights issue at an issue price of RM1 per rights share, on the basis of two rights share for every five existing shares.

According to the proposal, 59.2% of the funds raised will be utilised for repayment of borrowings, while 38.6% will be used to finance its development project at a 5,825 sq metres land in Kuala Lumpur.

Century Logistics Holdings Bhd's net profit for the second quarter ended June 30, 2015 (2QFY15) rose 150% to RM11.99 million or 3.25 sen per share, from RM4.79 million or 1.32 sen per share, on gains from the disposal of a commercial land for RM10.784 million.

Revenue for the quarter increased 7.38% to RM76.29 million, from RM71.05 million a year earlier, due to higher activities of the procurement logistics services segment.

Century Logistics (fundamental: 2.6; valaution: 2.4) has declared a single tier interim cash dividend of two sen per share in respect of the financial year ending Dec 31, 2015, payable on Sept 17.

For the cumulative six months (1HFY15), its net profit grew 75% to RM19.46 million or 5.3 sen per share, against RM11.12 million or 3.06 sen per share during the same period last year. Meanwhile revenue rose 5.77% to RM148.2 million, versus RM140.11 million.

KUB Malaysia Bhd (KUB), which is 23.62%-owned by the Ministry of Finance Inc, has named Datuk Abdul Rahim Mohd Zin as its group managing director (MD), effective today.

Abdul Rahim, who is a chartered accountant and a member of the Malaysian Institute of Accountants, has more than 25 years of experience and leadership in various fields, including banking and finance, oil and gas, shipping, and food and beverage (F&B).

Offshore crane fabricator Handal Resources Bhd registered a 3.6 times higher net profit of RM2.53 million or 1.58 sen a share for the second quarter financial ended June 30, 2015 (2QFY15), against RM698,000 or 0.44 sen a share a year ago, on higher revenue and improved gross profit margin contributed by most of its business segments.

Its 2QFY15 revenue came in at RM30.4 million, up 18.5% from RM25.66 million in 2QFY14, as its integrated crane, fabrication of crane and workover project businesses recorded higher turnovers.

For the six months period, Handal Resources (fundamental: 1.4; valuation: 1.7) posted a net profit of RM3.06 million, more than double as compared to RM1.25 million a year ago, while recording a marginal 2% higher cumulative revenue at RM50.67 million, from RM49.64 million last year.

Diversified group Insas Bhd’s net profit for the fourth quarter ended June 30, 2015 (4QFY15) rose 13.89% to RM33.48 million or 5.07 sen, from RM29.16 million 4.42 sen a year ago; while revenue jumped 62.55% to RM93.29 million, from RM57.39 million.

Insas (fundamental: 3.0; valuation: 2.1) noted despite higher revenue achieved by its investment holdings and trading division, the business reported lower pre-tax profit, due to lower gain on fair value changes of financial assets.

The group posted a cumulative net profit of RM92.16 million throughout FY15, having fallen 42.54% from RM160.40 million, backed by a revenue of RM412.76 million, which surged 49.27% from RM276.52 million in FY14.

Parkson Holdings Bhd has proposed the distribution of 10 sen for each ordinary share of RM1 for entitled shareholders, amounting to RM109.26 million, upon completion of an internal reorganisation.

In an announcement to Bursa today, Parkson has proposed to vary the utilisation of the proceeds to include a cash distribution of 10 sen for each ordinary share, subject to the completion of the internal reorganisation, i.e. the sale of its 67.6% stake in Parkson Retail Asia Ltd in Singapore to another subsidiary, Parkson Retail Group Ltd.

Parkson (fundamental: 1.8; valuation: 2.1) said the proposed cash distribution will be based on its issued and paid-up share capital, excluding treasury shares, as at Aug 14, 2015.

“The cash distribution will be implemented by way of a proposed capital repayment via a reduction of the share premium account of Parkson, pursuant to Sections 60(2) and 64 of the Companies Act, 1965,” it said.

Of the proceeds from the proposed internal reorganisation of S$228.51 million (equivalent to approximately RM641.42 million), RM640.42 million was originally planned to be used mainly for business expansion, new investment opportunities and/or working capital. The proposed variation would cut the proposed utilisation to RM531.16 million.

The Media Shoppe Bhd (fundamental :1.85; valuation: 0.9) has appointed two single largest shareholders — Datuk Low Liong Kian as executive director, and Tan Tzu Pin as a non-independent and non-executive director.

Both Low and Tan own a 21.226% stake in the company via Master Knowledge Sdn Bhd.

(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.)