KUALA LUMPUR (Nov 27): Based on corporate announcements and news flow today, the companies that may draw interest on Monday (Nov 30) including Axiata Group Bhd, AMMB Holdings Bhd, Affin Holdings Bhd, Mah Sing Group Bhd, Muhibbah Engineering (M) Bhd, Berjaya Assets Bhd and Eastern and Oriental Bhd (E&O).
AMMB Holdings Bhd (AmBank Group) said the RM53.7 million penalty imposed on it by Bank Negara Malaysia (BNM) was a result of weaknesses in its reporting systems and processes.
It told Bursa Malaysia that the BNM's action for the non-compliance came about because of weaknesses in its reporting systems and processes in place at the time, as well as inadequate skills on the part of some of its staff.
"The non-compliance did not result in financial losses either to AmBank Group, save for the penalty, or to its customers. BNM has not placed any restrictions on the business operations of AmBank Group," it added.
The stock exchange had, in a letter dated Nov 24, required AmBank Group to provide more details about the fine, which the group had announced about a day earlier. AmBank Group had earlier stated only that the fine was a result of non-compliance with certain regulations.
AmBank Group also said it had strengthened its organisational structure in the area of compliance in order to improve its systems and processes.
"To strengthen the compliance function, AmBank Group has recruited a number of senior and experienced officers. For all of its staff, AmBank Group has increased and enhanced training and awareness programmes and, at the same time, senior management and the respective boards have heightened the oversight and improved the check and balance processes," it said.
Muhibbah Engineering (M) Bhd has bagged a contract worth between RM93 million and RM100 million from Ophir Production Sdn Bhd to provide engineering, procurement, construction, installation and commissioning (EPCIC) services for the Ophir wellhead platform, located offshore Peninsular Malaysia.
The contract will commence this month for a period of 14 months to final hook-up and commissioning offshore, according to the filing to Bursa Malaysia.
The group also announced its quarterly earnings for the three month ended Sept 30. Its net profit for the third quarter ended Sept 30, 2015 (3QFY15) rose 13.27% to RM22.96 million from RM20.7 million a year ago due to improved operational efficiencies of the Favelle Favco crane division, as well as further growth and foreign exchange gain from its Cambodian airports operation.
Its revenue for the period came in 4.6% higher at RM393.62 million from RM376.1 million in 3QFY14.
For the nine-month period (9MFY15), net profit increased 6.8% to RM65.51 million or 14.43 sen per share from RM61.36 million or 14.52 sen per share a year ago, while revenue decreased 5.6% to RM1.17 billion from RM1.24 billion in 9MFY14.
Muhibbah Engineering has a total outstanding secured order book in hand of RM2.15 billion as at Nov 20, 2015, its filing shows.
Axiata Group Bhd announced a 40% jump on its net profit to RM891.39 million in the third quarter ended Sept 30, from RM635.85 million a year ago. Revenue grew to RM5.07 billion from RM4.65 billion in the previous corresponding quarter.
Axiata explained that the stronger US dollar had led to higher revenue in ringgit terms when the company converted its overseas income into the local currency.
The telco said it registered higher revenue from its operating units in Indonesia, Bangladesh, Sri Lanka and Cambodia. Malaysian operations, however, recorded lower income.
Its net profit for the cumulative nine-month period (9MFY15) rose to RM2.09 billion from RM1.77 billion a year earlier. Revenue was higher at RM14.52 billion versus RM13.9 billion in 9MFY14.
Alliance Financial Group Bhd reported a 25.3% drop in net profit for its second financial quarter ended Sept 30, 2015 (2QFY16) to RM134.66 million or 8.8 sen per share, from RM180.33 million or 11.9 sen per share a year ago.
Net interest income fell 3.6% to RM213.12 million in 2QFY16 from RM221.139 million in 2QFY15.
For the first six months ended Sept 30, 2015 (1HFY16), the group reported a 17.5% drop in net profit to RM256.59 million or 16.8 sen per share from RM311.14 million or 20.5 sen per share due to higher allowance for losses on loans in 1HFY16 and a gain from disposal of land, which was recorded in 1HFY15, the banking group announced to Bursa Malaysia.
Nevertheless, Alliance declared an interim dividend of eight sen per share, representing a dividend payout ratio of 48.3%, which will be paid on Dec 30.
Net interest income for 1HFY16 came in at RM420.9 million compared to RM420.96 million a year ago.
The group recorded a return on equity of 11.5% for 1HFY16. The gross impaired loans ratio remained stable at 1.1% as at Sept 30, 2015 (industry 1.6%) with loan loss coverage of 92.7%.
Net loans and advances stood at RM37.6 billion, growing 10.2% year-on-year (y-o-y) and 5.8% on an annualised basis. The group's loan origination efforts were focused on the better risk adjusted return loans, namely in small to medium enterprise, commercial and consumer unsecured lending.
Affin Holdings Bhd posted a lower net profit of RM102.39 million or 5.27 sen per share for the third quarter ended Sept 30, 2015 (3QFY15) compared with RM133.95 million or 6.95 sen per share a year ago, as a result of higher allowance for loan impairment and lower operating income.
Net income for 3QFY15 fell 7.8% to RM459.79 million from RM498.71 million in 3QFY14.
Nevertheless, the group declared an interim dividend of 2.99 sen for the financial year ending Dec 31, 2015 (FY15), payable on Dec 30.
For the cumulative nine-month period (9MFY15), net profit slid to RM271.86 million or 13.99 sen per share from RM384.07 million or 23.41 sen per share, due to higher allowance for loan impairment and higher overhead expenses of RM132.4 million and RM56.1 million respectively.
The 29.2% drop in net profit was offset by the write-back of allowance for securities impairment of RM23.6 million and a reduction in finance cost of RM20.1 million.
Net income slipped by a marginal 0.08% to RM1.338 billion in 9MFY15 from RM1.339 billion in 9MFY14.
In a statement on Friday, Affin said it reported an annualised loan growth rate of 4.3% for 9MFY15, predominantly in the segments of revolving credit, hire purchase, and housing loans/financing.
As at Sept 30, 2015, the group's loan to deposit ratio from customers was maintained at 91.4%, while the ratio of consumer deposits to total deposits stood at 29.7%.
The group's gross impaired loan ratio also stood at 2.21%, an increase of 17 basis points compared with June 30, 2015.
In a separate announcement, Affin has announced its subsidiary Affin Hwang Investment Bank Bhd and Thai-based Thanachart Securities PCL have today entered a strategic business alliance for collaboration in the area of institutional equities trading and research.
Under the agreement, Affin Hwang IB will have the exclusive right to distribute Thanachart Securities PCL's research reports covering companies listed on the Stock Exchange of Thailand (SET) to Malaysian institutional investors, on a co-branded basis.
Thanachart Securities is a wholly-owned subsidiary of Thanachart Bank.
In return, Affin Hwang IB will channel its institutional clients' trade orders for shares quoted on the SET via Thanachart Securities.
E&O, which saw its second-quarter net profit jump 15% year-on-year on higher revenue, reveals that the group’s Seri Tanjung Pinang Phase 2 (STP2) project is on track with the commencement of reclamation works expected to take place before the year end.
In a statement on Friday, E&O deputy managing director Eric Chan Kok Leong said the syndicated term loan for the project will be signed soon.
Last month, Chinese contractor China Communications Construction Company (M) Sdn Bhd was awarded the RM2.32 billion worth of land reclamation works for STP2.
On the compliance and regulatory front, Chan said all relevant requirements and authorities' approvals for STP2 are in hand. These include the approval of the project's Detailed Environmental Impact Assessment study by the Federal Department of Environment, endorsement of the STP2 master plan and granting of the planning permission for STP2 reclamation works by the Penang state authorities.
Chan also noted that the proposed listing of E&O's subsidiary Eastern & Oriental PLC on AIM of the London Stock Exchange is awaiting approval from the UK Listing Authority and is expected to be listed in the first half of next year.
On its latest quarterly result, E&O saw its net profit for the three months ended Sept 30, 2015 (2QFY16) grew to RM24.45 million or 1.99 sen per share from RM21.24 million or 1.74 sen per share a year ago.
Revenue grew 10.9% to RM85.71 million in 2QFY16 from RM77.29 million in 2QFY15.
For the cumulative six-month period (6MFY16), E&O's net profit rose 18.7% to RM47.71 million or 3.89 sen per share from RM40.2 million or 3.29 sen per share in 6MFY15.
Accumulative revenue for 6MFY16, however, fell by 25.3% to RM154.6 million from RM207.04 million in 6MFY15, mainly due to lower revenue from the property segment, which registered a decrease of RM53.778 million.
Moving forward, E&O said its focus will be on ensuring that it is well-poised for future opportunities, while ensuring that it maintains prudent cashflow management with sound financial planning to address current needs.