KUALA LUMPUR (May 23): Based on corporate announcements and news flow today, stocks in focus on Friday (May 24) may include: Genting Bhd, Genting Malaysia Bhd (GenM), Genting Plantations Bhd, MBM Resources Bhd, Inari Amertron Bhd, Heineken Malaysia Bhd, Ajinomoto (M) Bhd, Techbond Group Bhd, Leong Hup International Bhd, GFM Services Bhd and Boustead Heavy Industries Corp Bhd.

The Genting group of companies reported weaker earnings in their first quarter ended March 31, 2019 (1QFY19).

Genting Malaysia Bhd’s (GenM’s) net profit for 1QFY19 declined 25.11% to RM268.29 million on higher pre-opening expenses incurred due to the provision for termination related costs of RM198.3 million at Resorts World Genting.

It also recorded lower interest income due to impairment of the group’s investment in promissory notes issued by the Mashpee Wampanoag Tribe in 2018.

This was despite quarterly revenue growth of 14% to RM2.74 billion, supported mainly by higher contribution from its leisure and hospitality business in Malaysia, although overall gaming business volume declined due to the reduction in incentives offered to players as part of its cost rationalisation initiatives.

This dragged down Genting Bhd’s 1QFY19 6.8% to RM561.64 million, which was also impacted by a loss on a discontinued cash flow hedge.

Genting’s revenue grew 6.1% to RM5.57 billion due to an exceptionally high hold percentage in the mid to premium players segments.

Genting Plantations Bhd’s (GenP’s) net profit for 1QFY19, meanwhile, fell 58.72% to RM41.68 million from RM100.98 million a year earlier, dragged by lower palm product selling prices.

However, quarterly revenue increased 17.51% to RM621.7 million due to higher fresh fruit bunches production on the back of an increase in mature areas and better age profile in Indonesia, as well as stronger yield from its Malaysian operations.

MBM Resources Bhd’s net profit for 1QFY19 came in 51.31% higher at RM49.66 million, helped by strong demand for Perodua vehicles, especially the Myvi and Axia models. Quarterly revenue grew 14.9% to RM532.45 million on improved performance at its motor trading segment.

Lower revenue, changes in product mix, and higher depreciation costs weighed on the net profit of Inari Amertron Bhd in its third quarter ended March 31, pulling it down 31% year-on-year to RM38.19 million.

Revenue fell 21% to RM256.32 million due to lower volume loading on a major sensor product and also due in part to the disposal of assets of a 51%-owned subsidiary during the last financial year. The group declared a third interim dividend of one sen per share, payable on July 5.

Heineken Malaysia Bhd’s net profit for 1QFY19 came in at RM52.81 million, up 8.3% year-on-year on higher sales.

Revenue rose 21.1% to RM525.14 million mainly driven by higher sales volume from the effective execution of commercial campaigns during Chinese New Year, as well as the increase in sales revenue, prior to the price adjustment on April 1.

Ajinomoto (M) Bhd saw its net profit decline by 19.54% to RM11.82 million for the fourth quarter ended March 31, 2019 (4QFY19) due to higher advertising and sales promotion expenses, despite revenue growing 3.85% to RM119.48 million. The group proposed a dividend of 47 sen, pending shareholders’ approval at the upcoming annual general meeting.

Industrial adhesive manufacturer Techbond Group Bhd, which raised almost RM40 million via its initial public offering last December, will be spending US$2.7 million to build a factory complex in Vietnam for the group’s expansion.

Techbond said its wholly-owned subsidiary Techbond MFG (Vietnam) Co Ltd has signed a construction contract with main contractor Trung Hau Construction Corp for the construction of a factory complex in Vietnam-Singapore Industrial Park in Binh Duong province. The contract is scheduled to be completed by the first quarter of 2020.

Leong Hup International Bhd, which was listed on Bursa Malaysia last week, said its stabilising manager Maybank Investment Bank Bhd (Maybank IB) bought 25.4 million shares at an average price of RM1.031 today. This was the fourth and largest attempt by Maybank IB to stabilise the integrated poultry player’s share price. Nonetheless, Leong Hup’s share price still fell two sen or 1.9% to close at RM1.03.

GFM Services Bhd’s net profit for 1QFY19 almost doubled to a record high of RM5.53 million, thanks to revenue contribution from a recent acquisition, new contracts secured and renewals and extensions of contracts with better rates. The group also reported its best-ever quarterly revenue of RM42.44 million — up 33.04% year-on-year.

Boustead Heavy Industries Corp Bhd is in the red for the second consecutive quarter, with a net loss of RM4.3 million in 1QFY19, mainly due to lower defence-related and commercial-based maintenance, repair and overhaul (MRO) activities. It also recorded negative contributions from its associates and lower negative contribution from its energy segment.

Its revenue fell 8.62% to RM36.3 million due to a delay in finalising submarine contracts which were eventually received and accepted in March this year.