KUALA LUMPUR (Feb 26): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Feb 27) may include: Genting Plantations Bhd, IOI Properties Group Bhd, Petronas Dagangan Bhd, Damansara Realty Bhd, Ann Joo Resources Bhd, Parkson Holdings Bhd, Tropicana Corp Bhd, Star Media Group Bhd, SKP Resources Bhd, Amway (Malaysia) Holdings Bhd, 7-Eleven Malaysia Holdings Bhd, Malaysian Resources Corp Bhd, Malayan Banking Bhd and Telekom Malaysia Bhd.

Genting Plantations Bhd’s net profit for its fourth quarter ended Dec 31, 2018 tumbled 87.6% to RM14.27 million, from RM115.35 million a year earlier, due to lower selling prices for its palm products.

Revenue contracted 8.7% to RM482.34 million from RM528.42 million in the year-ago fourth quarter.

Genting Plantations recommended a final single tier dividend of 8.25 sen per share.

For the full year, the group’s net profit halved to RM164.9 million from RM335.09 million in FY17, although full-year revenue grew 5.2% to RM1.9 billion, from RM1.81 billion in the previous year.

The group expects its FFB producion in 2019 to be on further upward trajectory on prospects of higher crop output from its Indonesia operations, and additional areas coming into maturity and better age profile.
 
IOI Properties Group Bhd's net profit for the quarter ended Dec 31, 2018 (2QFY19) more than doubled to RM214.86 million from RM97.45 million a year earlier, on lower cost of sales and as a result of the group’s joint ventures turning to profit.

The higher profit was despite quarterly revenue declining 4.21% to RM666.15 million from RM695.41 million a year earlier.

For the cumulative six-month period (1HFY19), IOI Properties’ net profit fell 4.59% to RM326.82 million from RM342.56 million a year ago, on higher taxes, which ate into the turnaround of its joint ventures in the period under review.

Petronas Dagangan Bhd's fourth quarter net profit plunged 83% to RM46.68 million from RM278.58 million a year earlier, due to a significant decline in petroleum product prices while quarterly revenue rose 10% to RM7.9 billion from RM7.16 billion a year ago, in line with higher sales volume and an increase in average selling prices.

The board declared a final interim dividend of 25 sen per share, payable on March 28.

For the full year, PetDag's net profit fell 45% to RM849.85 million, from RM1.54 billion in the previous year, while revenue rose 10% to RM30.07 billion from RM27.42 billion.

PetDag said moving forward the company is cautious of the challenging landscape ahead given the continued volatility of oil price and introduction of weekly fuel prices.

Damansara Realty Bhd (DBhd) said Putrajaya Corp has cancelled a project to build 1Malaysia Civil Servants Housing (PPA1M) units and related commercial components in Precinct 5, due to the Government’s move to unify the development of affordable homes under the Ministry of Housing and Local Government.

Other than costs incurred for the work done since the project started which are claimable, the group said the decision would not have any significant impact on the group’s earnings or net assets per share.

On Nov 30, 2015, DBhd had inked the agreement with Putrajaya Corp to develop the project, which comprises 1,350 residential units and 45 commercial units, at a gross development cost of RM467.3 million.

Ann Joo Resources Bhd's net profit declined 40.5% in its fourth quarter ended Dec 31, 2018 (4QFY18) to RM33.02 million, from RM55.53 million in the year-ago quarter, due to squeezed margins and the write down of inventories.

This was in spite of a 10.7% quarterly revenue growth to RM675.73 million from RM610.15 million a year ago, which was helped by higher export tonnage, despite lower selling price depressed by stiff competition in the domestic market.

The group declared a second interim dividend of six sen per share in respect of FY18, payable on May 24.

For FY18, Ann Joo’s net profit was 27.2% lower at RM149.54 million from RM205.38 million in FY17; while revenue grew 5.8% to RM2.32 billion compared with RM2.2 billion in FY17, in line with international trends, and higher export tonnage in 4QFY18.

Ann Joo said its performance for the year ahead will be heavily dependent on the pace of the rectification of the domestic oversupply situation.

Parkson Holdings Bhd continued to record losses despite improvements in its Malaysian retailing operations, with net loss widening to RM37.57 million in its second quarter ended Dec 31, 2018 (2QFY19) from RM13.87 million in the year-ago quarter.

This is notwithstanding the group having largely held its revenue steady at RM1.05 billion, which is just a marginal 1% less from the last corresponding quarter's RM1.06 billion.

The weaker 2QFY19 pushed Parkson's cumulative net loss for the first half of FY19 (1HFY19) to RM80.58 million, 40.4% more than the RM57.4 million it recorded in 1HFY18, while revenue slipped 0.2% to RM1.978 billion from RM1.981 billion.

Parkson expects its retailing division to benefit from the seasonally higher consumer spending during the Chinese New Year festivities in February.

Tropicana Corp Bhd's net profit fell 32.7% to RM51.48 million in the fourth quarter ended Dec 31, 2018 (4QFY18) from RM76.44 million a year ago, on higher income tax expense.

Quarterly revenue, however, was 9.2% higher at RM593.93 million from RM544 million a year ago, which the property developer attributed to the completion of the disposal of development lands in Pekan Country Heights, Selangor for RM143 million.

The weak quarterly performance dragged the group's net profit down by 6% to close FY18 on a lower note at RM170.03 million compared with RM180.89 million in FY17. Revenue was also down 9.9% to RM1.64 billion from RM1.81 billion in the previous year, mainly due to lower sales and progress billings across projects in the Klang Valley as well as the southern and northern regions.

Tropicana plans in 2019 to introduce new developments and phases within the existing signature Tropicana townships amounting to GDV of more than RM3.2 billion.

Star Media Group Bhd's net loss narrowed to RM9.06 million in its fourth quarter ended Dec 31, 2018 (4QFY18), from a net loss of RM155.15 million in the same quarter last year.

Stripping off the impact of discontinued operations, and expenses for a mutual separation scheme (MSS) in its print and digital segment, the media group would have recorded a profit before tax of RM2.45 million during the quarter under review versus a net loss of RM13.32 million a year ago, though revenue retreated 18.6% to RM93.04 million from RM114.32 million.

It declared an interim dividend of 3 sen per share in respect of FY18, payable on April 18.

For the full FY18, Star Media Group’s net profit stood at RM5.26 million, compared with RM90.29 million FY17, while revenue came in at RM392.68 million, compared with RM469.19 million in the previous year.

Going forward, Star Media expects its print and digital segment to perform better as a result of better cost management following the MSS/ERO exercise, although advertising expenditure is expected to be soft and remain challenging in 2019.

SKP Resources Bhd’s net profit dropped 22.6% to RM23.27 million in its third quarter ended Dec 31, 2018 (3QFY19), from RM30.05 million in the year-ago quarter, in tandem with lower revenue contribution, which fell 22.9% lower at RM400.04 million, from RM518.69 million before.

For the cumulative nine-month period (9MFY19), SKP registered a 21.6% decline in net profit to RM77.20 million, from RM98.49 million in the previous corresponding period. Revenue fell 20.1% to RM1.31 billion, from RM1.64 billion previously (9MFY18).

The group expects to remain profitable as “prospects remain good” and as “orders from existing and new customers contribute positively to the group’s performance for the financial year ending March 31, 2019 (FY19).

Amway (Malaysia) Holdings Bhd’s net profit grew 62.8% to RM21.93 million in its fourth quarter ended Dec 31, 2018 (4QFY18) from RM13.47 million previously, due to higher sales and lower import cost primarily attributed to favourable foreign exchange impact, despite being partially offset by higher operating expenses.

Quarterly revenue came in a marginal 0.9% lower at RM248.96 million from RM251.35 million.

The group declared a fourth single tier interim dividend of five sen, and a special single tier dividend of 7.5 sen per share in respect of FY18, payable on March 26.

For FY18, Amway’s net profit was up 3.5% to RM54.51 million, from RM52.64 million in FY17; while revenue contracted 1.2% to RM972.27 million from RM984.21 million in the previous year, due to the adoption of MFRS 15.

Amway said it is optimistic that sales will continue to grow in 2019.

7-Eleven Malaysia Holdings Bhd’s net profit fell 21.26% to RM12.49 million or 1.11 sen per share for the fourth quarter ended Dec 31, 2018 (4QFY18) from RM15.86 million or 1.43 sen per share last year, on lower operating income.

Its quarterly revenue, however, was up 1.47% to RM554.26 million compared with RM546.24 million in 4QFY17, driven by growth in new stores, higher average spend per customer and better consumer promotion activity.

For the full year ended Dec 31, 2018 (FY18), its net profit grew 2.39% to RM51.31 million or 4.57 sen per share versus RM50.11 million or 4.51 sen per share last year, while revenue rose 1.33% to RM2.22 billion from RM2.19 billion in FY17.

On prospects, 7-Eleven said the board of directors are expecting trading conditions for the next quarter to improve, driven by domestic demand and anticipated heightened consumer sentiment.

Malaysian Resources Corp Bhd (MRCB) closed out 2018 on a low note on absence of one-off disposal gains recognised in 2017, and slowing down of construction work on the Light Rail Transit Line 3 (LRT3) project undertaken by its 50%-owned unit MRCB George Kent Sdn Bhd.

Its net profit for the financial year ended Dec 31, 2018 (FY18) dropped 37.5% to RM101.17 million from RM161.91 million in FY17, dragged down by weak quarterly earnings which fell 73.2% in the three months ended Dec 31, 2018 (4QFY18) to RM26.4 million from RM98.65 million a year ago.

Quarterly revenue increased 7% to RM374.11 million from RM349.65 million in 4QFY17, but full-year revenue fell 29.2% to RM1.87 billion from RM2.64 billion in FY17.

MRCB said deferred revenue will begin to flow again this year — after the new LRT3 contract has been signed on Jan 25 — and continue until the project’s completion in 2024.

Nevertheless, the group has proposed a first and final dividend of 1.75 sen per share.

Malayan Banking Bhd (Maybank) expects to see net interest margin (NIM) compression in 2019, as the group believes competition will remain stiff in the Malaysian and Indonesian markets.

Maybank’s net profit for the fourth quarter ended Dec 31, 2018 rose 9.1% year-on-year to RM2.33 billion from RM2.13 billion on higher net interest income and Islamic banking income. Revenue for the quarter rose to RM12.23 billion from RM11.79 billion previously, according to the group's Bursa Malaysia filing.

The banking group has proposed a dividend of 32 sen per share.

For the financial year ended Dec 31 (FY18), Maybank's net profit rose 7.9% to RM8.11 billion versus RM7.52 billion a year earlier, on the back of revenue of RM47.32 billion against RM45.58 billion previously.

Telekom Malaysia Bhd (TM) anticipates revenue its financial year ending Dec 31, 2019 (FY19) to be lower versus FY18, amid continuous competition and higher customer expectations for better services with lower prices.

Earlier today, TM said its net profit for the fourth quarter ended Dec 31, 2018 (4QFY18) slumped 74.9% to RM69.66 million, from RM277.01 million a year ago, while revenue dropped to RM3.09 billion from RM3.2 billion.

For FY18, TM’s net profit fell 83.5% to RM153.15 million from RM929.75 million in FY17, while revenue declined 2.2% to RM11.82 billion from RM12.09 billion.

TM acting group chief executive officer Imri Mokhtar said at a media briefing that TM will focus on various cost optimisation initiatives to increase earnings before interest and tax in FY19.