Axiata, IOI, Kossan, Malayan Flour Mill, Mercury Industries, Pesona Metro, Pharmaniaga, Serba Dinamik, Sime Darby Plantations and Star

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(Aug 17): Based on corporate announcements and news flow today, stocks in focus on Monday (Aug 20) may include the following: Axiata Bhd, IOI Corp Bhd, Kossan Rubber Industries Bhd, Malayan Flour Mills Bhd, Mercury Industries Bhd, Pesona Metro Holdings Bhd, Pharmaniaga Bhd, Serba Dinamik Holdings Bhd, Sime Darby Plantation Bhd and Star Media Group Bhd.

A Bangladesh unit of Axiata Bhd’s 63%-owned edotco group has obtained a conditional tower sharing licence from the Bangladesh Telecommunication Regulatory Commission (BTRC).

The licence will allow the company to build and manage telecommunication towers for multiple mobile network operators in Bangladesh. It currently owns and operates over 9,000 towers in the country.

IOI Corp Bhd’s net profit for the fourth quarter ended June 30, 2018 (4QFY18) retreated 88.72% to RM35.8 million from RM317.5 million previously mainly on foreign exchange losses incurred in the quarter compared with gains in the same period last year.

Quarterly revenue rose 4% to RM1.8 billion from RM1.73 billion in 4QFY17. It declared a second interim dividend of 4.5 sen per share, from 5 sen in the same quarter last year.

For the full-FY18 period, IOI’s net profit more than quadrupled to RM3.06 billion from RM743.2 million the year before, while revenue climbed 2.32% to RM7.42 billion from RM7.25 billion in FY17.

Kossan Rubber Industries Bhd’s net profit slipped 2.5% to RM44.7 million in the second quarter ended June 30, 2018 from RM45.84 million previously, amid lower contribution from the gloves division caused by higher material and energy costs and a strengthening ringgit in the period.

These were however partly offset by improved performance in the technical rubber products division. Quarterly revenue rose 1.3% to RM496.79 million from RM490.51 million in 2QFY17.

Cumulative net profit for the first half declined 3.3% to RM89.99 million from RM93.09 million a year ago, while revenue fell by a marginal 0.96% to RM980.9 million compared with RM990.49 million in 1HFY17.

Malayan Flour Mills Bhd's (MFM) net profit plunged 70.5% to RM4.77 million in the second quarter ended June 30, 2018 from RM16.15 million a year ago, largely due to lower profits in the flour and grains trading and poultry integration segments.

Quarterly revenue also fell 4.9% to RM547.68 million from RM575.93 million on lower sales at the poultry segment. It declared an interim dividend of 2 sen per share, payable on Sept 2.

Group net profit for the cumulative six months slumped 84.5% to RM6.37 million from RM41.06 million a year ago, while revenue fell 5.8% to RM1.11 billion from RM1.18 billion in 1HFY17.

Mercury Industries Bhd said a portion of its on-going PR1MA-linked contract in Melaka has been suspended, with the cancelled portion estimated at RM73.06 million.

It first secured the contract – which has a total sum of RM106.6 million – in 2016. Mercury expects the termination to reduce group earnings for the financial year ending Dec 31, 2018.

Pesona Metro Holdings Bhd bagged a RM218.22 million contract to build a 41-storey commercial tower in Jalan Conlay, Kuala Lumpur.

The project will be undertaken by a joint-venture company over the course of 26 months from September 2018 to October 2020. Funding for the project will be sourced internally.

Pharmaniaga Bhd saw its net profit fall 43.3% to RM5.39 million in the second quarter ended June 30, 2018 from RM9.52 million a year ago, on higher corporate tax.

Quarterly revenue climbed 12.5% to RM582.73 million from RM517.97 million in 2QFY17, mainly due to increased demand from government hospitals. It declared a second interim dividend of 4 sen per share, payable Sept 18.

Net profit for the cumulative six months ended June 30 declined 19.2% to RM22.98 million from RM28.44 million a year ago, while revenue rose 5.67% to RM1.2 billion from RM1.14 billion in 1HFY17.

Serba Dinamik Holdings Bhd is formalising its joint venture with Izin Budi Sdn Bhd to develop a piece of land measuring 15.87 acres in Bukit Pelali, Pengerang, a year after the two parties first inked a Memorandum of Agreement on the proposal.

Serba Dinamik will act as a developer for the project, which forms part of the 132-acre mixed development Pengerang Integrated Development Project (PIDP) that would complement the Pengerang Integrated Complex by Petronas.

Sime Darby Plantation Bhd will be signing a Memorandum of Understanding with China National Cereals, Oils and Foodstuffs Corp Group for the technical development on further downstream applications for palm oil and palm-based products in China.

This would be done concurrent with Prime Minister Tun Dr Mahathir Mohamad’s visit to the country.

Star Media Group Bhd's net profit plummeted 83.4% to RM1.41 million in the second quarter ended June 30, 2018 from RM8.51 million in the same period last year, hit by a drop in advertising revenue after the 14th general election.

Quarterly revenue also fell 15.1% to RM99.49 million from RM117.16 million a year ago.

For the cumulative six months, Star Media posted a 20% decline in net profit to RM12.73 million from RM15.16 million a year ago, while revenue dropped 11.6% to RM208.52 million from RM235.76 million in 1HFY17.