AirAsia, Perdana Petroleum, Freight Management, Scientex, United Malacca, Dayang, Amway, Uzma and Poh Huat

AirAsia, Perdana Petroleum, Freight Management, Scientex, United Malacca, Dayang, Amway, Uzma and Poh Huat
-A +A

KUALA LUMPUR (June 23): Based on corporate announcements and news flow today, stocks in focus on Wednesday (June 24) may include: AirAsia Group Bhd, Perdana Petroleum Bhd, Freight Management Holdings Bhd, Scientex Bhd, United Malacca Bhd, Dayang Enterprise Holdings Bhd, Amway (Malaysia) Holdings Bhd, Uzma Bhd and Poh Huat Resources Holdings Bhd.

AirAsia Group Bhd group chief executive officer Tan Sri Tony Fernandes hinted that the budget airline may exit its India joint venture (JV) because India is deemed a peripheral market for the group. “We would never say that we would never exit India," Fernandes was quoted as saying in a Credit Suisse report. 

AirAsia's India JV is undertaken via Airasia (India) Ltd under a partnership with Tata Sons Private Ltd. AirAsia owns a 49% stake in Airasia India.  

Perdana Petroleum Bhd posted a narrower net loss of RM13.9 million for 1QFY20, compared to a net loss of RM32.94 million a year earlier, backed by higher vessel utilisation of 64% versus 36% in 1QFY19. Quarterly revenue more than doubled to RM59.67 million from RM25.7 million previously. 

Separately, the group announced the resignation of Datuk Ling Suk Kiong as executive chairman. Ling is replaced by Datuk Dr Abd Hapiz Abdullah, who was an independent director on the board.

Freight Management Holdings Bhd's net profit fell 28.01% to RM2.03 million for 3QFY20, from RM2.82 million a year ago, mainly due to ongoing costs for its new distribution services and provision of trade receivables, which it is attempting to recover. Quarterly revenue, however, was up 6.71% at RM136.97 million from RM128.36 million previously, as most of its services posted increases in revenue. 

For 9MFY20, its net profit shrank 12.74% to RM10.94 million from RM12.53 million a year ago. This was despite revenue for 9MFY20 rising 5.51% to RM424.56 million from RM402.4 million previously.

Scientex Bhd's net profit for 3QFY20 dipped 4.5% to RM69.62 million from RM72.88 million a year earlier, due mainly to the property division, which was impacted by the Movement Control Order (MCO). Quarterly revenue slipped 6.8% to RM772.23 million versus RM828.46 million previously. 

For 9MFY20, the group’s earnings rose 23.8% to RM248.06 million from RM200.29 million on the back of an 11.1% increase in revenue to RM2.56 billion versus RM2.31 billion earlier. Going forward, group said its prospects for both manufacturing and property development remain positive.

United Malacca Bhd has widened its net loss to RM61.23 million for 4QFY20, from RM10.82 million a year earlier. This was recorded after taking into account an impairment on bearer plants of RM56.8 million. Quarterly revenue, however, grew 52.74% to RM86.19 million versus RM56.43 million previously. 

For full FY20, the oil palm company returned to profitability, raking in RM15.78 million in earnings compared with a net loss of RM39.03 million previously. This was contributed by a gain on disposal of non-current assets held for sale of RM103.2 million. Revenue for the period grew 44% to RM293.98 million from RM203.74 million previously. 

Dayang Enterprise Holdings Bhd returned to the black in 1QFY20, chalking up a net profit of RM9.33 million compared to a net loss of RM17.15 million in 1QFY19. Quarterly revenue increased to RM172.1 million, up 10% from RM156.41 million previously. The group’s better performance was largely contributed by higher vessel utilisation and higher work orders received and performed under the topside maintenance contracts. 

Dayang’s order book stood at RM4 billion, but the group cautioned that there is “no certainty that work orders of high values will be issued in the near term”. Nevertheless, the group said it boasts a strong execution track record and a solid balance sheet.

Amway (Malaysia) Holdings Bhd registered a marginal 4% drop in its net profit to RM10.21 million for 1QFY20, compared with RM10.62 million a year ago, amid lower sales and higher import costs arising from an unfavourable foreign exchange impact. Quarterly revenue slipped 5% to RM234.64 million from RM247.49 million previously, following shop closures due to the MCO. 

Going forward, the group expects sales growth to be flat this year due to the Covid-19 crisis and consequent MCO, and the limitations on social gatherings and shop operations post MCO, as well as the pandemic's negative impact on consumers' purchasing power. Amway, however, expects this to be partially offset by increased demand for health supplements, cleansers, air treatment and such similar products.

Uzma Bhd’s wholly-owned subsidiary Uzma Engineering Sdn Bhd has secured a RM27 million contract from Petronas Carigali Sdn Bhd for the provision of portable water injection module (PWIM) for the Sepat platform. The scope of the project involves design, engineering, procurement, fabrication, installation, hook-up, commissioning, operation and maintenance of the PWIM at Sepat platform. The contract period shall be effective from April 22 and will expire 30 months after the first water injection at Sepat platform.

Poh Huat Resources Holdings Bhd said its operations were affected by the Covid-19 pandemic, causing its net profit to fall 27% to RM6.95 million in 2QFY20 from RM9.54 million previously. Quarterly revenue fell 18% to RM121.18 million, compared to RM147.01 million a year ago. 

Net profit for the cumulative first half of the year was lower by 26% at RM18.29 million versus RM24.8 million previously, as revenue was also lower for the period by 10% at RM309.98 million versus RM344.07 million a year ago. With no clear resolution of the Covid-19 pandemic, the outlook in the months ahead remains highly unpredictable, said Poh Huat, which is now expecting the full impact of the Covid-19 pandemic to be reflected in the second half of its current financial year.