Allianz, TNB, Eversendai, Serba Dinamik, Tropicana, MAHB, MBSB, Green Packet, Ann Joo, Sasbadi and Ikhmas Jaya

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KUALA LUMPUR (June 30): Based on corporate announcements and news flow today, stocks in focus on Wednesday (July 1) may include: Allianz Malaysia Bhd, Tenaga Nasional Bhd (TNB), Eversendai Corporation Bhd, Serba Dinamik Holdings Bhd, Tropicana Corp Bhd, Malaysia Airports Holdings Bhd (MAHB), Malaysia Building Society Bhd (MBSB), Green Packet Bhd, Ann Joo Resources Bhd, Sasbadi Holdings Bhd and Ikhmas Jaya Group Bhd.

Allianz Malaysia Bhd is expecting its bottom line to possibly perform better with a single-digit top-line or revenue growth for FY20. The group said its core profit — excluding changes in fair value — could be higher than its FY19 numbers, so long as its revenue grows when things return to normal. This, it said, will also depend on the financial situation of policyholders, once the moratorium on loan repayments — which lasts from April 1 to Sept 30 — is over.

Tenaga Nasional Bhd (TNB) said it is raising up to RM12 billion via two sukuk programmes for future capital expenditure, investment, general corporate purposes and working capital requirements. The two programmes are the Islamic Medium Term Notes amounting to RM10 billion and the Islamic Commercial Papers worth RM2 billion, with a tenure of 50 years and seven years respectively. The national utility company said it may also utilise the proceeds to refinance any existing financing facilities of TNB or its subsidiaries, and to defray any fees and expenses for the two Islamic bond programmes.

Eversendai Corporation Bhd is to pay RM235 million to acquire liftboat firm Vahana Offshore (M) Sdn Bhd via the issuance of new redeemable convertible preference shares (RCPS). This will involve the issuance of 770.49 million RCPS in Eversendai at 30.5 sen each. The group said its diversification into the liftboat business offers more opportunities to market its core expertise to energy players.

Separately, Eversendai reported a net loss of RM10.15 million for 1QFY20 compared with a net profit of RM11.14 million a year earlier, mainly due to unrealised forex losses amounting to RM11.4 million. Quarterly revenue dropped 42.8% to RM228.5 million from RM399.6 million, dragged by delayed progress on planned sites which is also partially attributable to the Covid-19 lockdown.

Serba Dinamik Holdings Bhd has bagged 10 new contracts including three worth an estimated RM543.5 million in Indonesia and Zambia. They comprise an engineering, procurement, construction and commissioning contract, two communication and technology contracts and seven operations and maintenance contracts. The group said it is confident of recording another “peak” for FY20.

Tropicana Corp Bhd’s 1QFY20 net profit fell 89% to RM5.16 million, from RM46.06 million a year earlier, due to lower progress billings across some of the group’s key ongoing projects and lower sales during the movement control order period. Quarterly revenue also dropped 32% to RM142.73 million, from RM209.77 million previously. Going forward, the group said it expects to see demand for properties in prime locations with attractive pricing.

Malaysia Airports Holdings Bhd (MAHB) has slashed its planned RM1.8 billion capital expenditure (capex) for 2020 by 82.22% to RM320 million, as the airport operator embarks on an aggressive cost-optimisation plan amid the ongoing Covid-19 pandemic. It said the bulk of the original capex allocation comprised funds for airport expansion and other projects under the regulated asset base framework, which have been put on hold in light of the Covid-19 outbreak. MAHB has also reduced its operating cost by 20% and is exploring ways to improve liquidity.

Malaysia Building Society Bhd (MBSB) is targeting a loan growth of 3% to 4% for FY20, amid uncertainties brought about by the Covid-19 pandemic. To achieve this, the bank said it will be focusing on the civil servants’ segment, as well as government projects and contracts. On another note, the bank said its plan to list MBSB’s wholly-owned banking unit — MBSB Bank — on Bursa Malaysia remains on track.

Green Packet Bhd reported a net loss of RM34.07 million for 1QFY20, much wider than the RM13.88 million net loss a year earlier, as a result of higher costs and a fair value adjustment on an investment during the period under review. This was despite a 50% increase in revenue to RM147.05 million from RM97.94 million a year ago, on the back of higher sales across its business segments. The firm expects a better performance for the full year of FY20, backed by the progressive market response to the rapid digital connectivity of workplace safety processes by both the private and public sectors.

Ann Joo Resources Bhd’s net loss widened to RM30.56 for 1QFY20 from RM6.60 million a year ago, due to, among others, lower sales and selling prices of steel products amid the Covid-19 pandemic, which resulted in temporary business closures and global supply chain disruptions.  Quarterly revenue fell 17.18% to RM445.67 million from RM538.12 million previously, on lower sales tonnage for both domestic and export markets. On prospects, Ann Joo said domestic steel demand continues to be affected by a low resumption rate of construction activity.

Educational publisher Sasbadi Holdings Bhd plans to collaborate with China's Huawei on the development of e-learning products by leveraging the latter's cloud artificial intelligence technology and to implement joint opportunities. The firm has entered into a memorandum of collaboration with Huawei, which includes jointly promoting Sasbadi’s e-learning products in Malaysia and Southeast Asia via Huawei cloud marketplace. The memorandum will remain in force for two years.

Ikhmas Jaya Group Bhd’s external auditor Messrs KPMG PLT has expressed an unqualified opinion with material uncertainty related to the going concern ability of the group in respect of FY19. The auditor drew attention to the group and company’s incurred net losses of RM159.5 million and RM161.8 million respectively for FY19. At the same time, it also noted that the group’s current liabilities had exceeded its current assets by RM21.6 million. These conditions, among others, indicated material uncertainties exist that may cast significant doubt on the ability of the group to continue as a going concern, according to the auditor.