KUALA LUMPUR (Nov 27): Based on corporate announcements and news flow today, shares that may be in focus on Monday (Nov 30) include: Hong Leong Bank Bhd, Hong Leong Financial Group Bhd, Hibiscus Petroleum Bhd, Ekovest Bhd, Padini Holdings Bhd, Axiata Group Bhd, Alliance Bank Malaysia Bhd, QL Resources Bhd, KNM Group Bhd, Malayan Banking Bhd (Maybank), Affin Bank Bhd, Public Bank Bhd, CIMB Group Holdings Bhd, Kenanga Investment Bank Bhd, Sunway Bhd, Paramount Corp Bhd, Boustead Heavy Industries Corp Bhd (BHIC) and TDM Bhd.
Hong Leong Bank Bhd’s net profit for the first quarter ended Sept 30, 2020 (1QFY21) increased to RM728.9 million or 35.6 sen per share, from RM569.42 million or 27.82 sen per share for the immediate preceding quarter. Revenue also rose 12.7% to RM1.35 billion for the quarter under review, from RM1.2 billion for 4QFY20. On a year-on-year basis, its net profit was up 5.9% from RM688.68 million or 33.65 sen per share, while revenue was 11.01% higher from RM1.22 billion.
Hong Leong Financial Group Bhd (HLFG) reported a 19.75% rise in its net profit for 1QFY21 to RM587.03 million, from RM490.2 million a year ago, lifted by stronger contributions from all of its operating businesses. Revenue climbed 13.02% to RM1.5 billion from RM1.33 billion. Compared to the immediate preceding quarter, the group’s net profit was up 11.79% from RM525.14 million for 4QFY20, while revenue rose 4.87% from RM1.43 billion.
Hibiscus Petroleum Bhd was back into the black in 1QFY21 with a net profit of RM10.03 million, from a net loss of RM145.2 million in the preceding quarter. The oil and gas group attributed its return to profitability to higher oil prices and greater output from its North Sabah, Anasuria Hibiscus and 3D Oil, VIC/L31 and VIC/P57 assets. Revenue jumped 268.38% to RM145.49 million, from RM39.5 million in 4QFY20.
A recovery in business activities helped Ekovest Bhd swing back into the black with a net profit of RM10.86 million in 1QFY21, from a net loss of RM53.82 million in the preceding quarter. Revenue increased 63.17% to RM313.77 million, from RM192.3 million in 4QFY20. The group attributed the improved results to more construction work done being recognised, an increase in traffic volume for its toll operations, and an increase in rental income from the EkoCheras Shopping Mall, compared with 4QFY20.
Padini Holdings Bhd’s net profit for 1QFY21 rose 5.67% to RM20.72 million, from RM19.61 million a year ago, thanks to cost control in staff cost and rental rebate received during the quarter. Revenue, however, fell 8.08% to RM310.72 million from RM338.04 million a year ago, mainly due to the adverse impact from the Covid-19 pandemic outbreak.
Axiata Group Bhd’s net profit jumped 96.9% to RM352.99 million or 3.8 sen per share in 3QFY20, from RM179.27 million or two sen per share a year ago, thanks to lower depreciation and amortisation, plus narrower forex loss and tax. Quarterly revenue, however, slipped 1.6% to RM6.11 billion from RM6.21 billion in 3QFY19, due to decline in all operating companies, except mobile operations in Bangladesh, Sri Lanka and the infrastructure segment.
Alliance Bank Malaysia Bhd’s net profit for the second quarter ended Sept 30, 2020 (2QFY21) fell 10.02% to RM103.94 million from RM115.52 million a year ago, due to higher reserves. Revenue, however, rose 11% to RM474.45 million from RM427.44 million a year ago. The bank said it did not declare a first interim dividend in the second quarter of FY21 and will consider future dividend proposals, once the full economic impact of the Covid-19 pandemic is clearer.
QL Resources Bhd's net profit for 2QFY21 grew 0.64% to RM70.13 million from RM69.68 million a year ago, underpinned by improved margins from its marine product manufacturing division. Revenue inched up 0.5% to RM1.08 billion, from RM1.07 billion.
KNM Group Bhd has secured a US$23 million (RM93.63 million) contract for the supply of equipment, piping systems and process control, and the integration of an energy storage vessel, from Germany-based power company Vattenfall Wärme Berlin AG. The contract involves the supply of overall engineering equipment (static and rotary), piping systems, process control and integration of the energy/heat storage vessel for the Vattenfall Energy Storage “Reuter-West”, Berlin Project.
Malayan Banking Bhd (Maybank) saw a slight fall in its net profit for 3QFY20 to RM1.95 billion, down 2.3% from RM2 billion for the previous year’s corresponding quarter, amid lower net operating income due to the Covid-19 pandemic. Revenue for the quarter contracted 0.6% to RM13.76 billion from RM13.83 billion. The bank declared an interim dividend of 13.5 sen per share, which will be made under its dividend reinvestment plan.
Affin Bank Bhd reported a net profit of RM48.72 million in 3QFY20 versus RM67.4 million in 2QFY20, representing a 28% drop which was mainly due to the recognition of modification losses on the loan moratorium and higher overhead expenses. Revenue in the quarter, however, was 35% higher at RM694.2 million, compared with RM512.96 million in the preceding quarter. No dividend was declared this quarter, as well as the last.
Public Bank Bhd’s net profit for 3QFY20 rose 2.2% year-on-year to RM1.39 billion from RM1.36 billion, despite lower revenue, as it recorded higher investment income during the quarter. Quarterly revenue fell 8.6% to RM5.13 billion from RM5.61 billion. Like in the two previous quarters of this year, the bank did not announce any dividend for 3QFY20.
CIMB Group Holdings Bhd reported a net profit of RM194.44 million for its 3QFY20, down 80.8% from the RM1.01 billion it made a year ago, amid lower net interest margin (NIM) and higher provisions across several business segments, with the commercial banking segment posting a loss. The group's revenue or operating income for the quarter slipped 3.7% to RM4.46 billion from RM4.64 billion, largely due to weaker fee-based non-interest income and lower NIM, as a result of the overnight policy rate cuts in Malaysia and low-interest rates in its core markets.
Kenanga Investment Bank Bhd has recorded an eleven-fold hike to its net profit for the third quarter ended Sept 30, 2020 to RM49.27 million, from RM4.29 million in the same quarter last year, boosted by its stockbroking and investment management business. Revenue doubled to RM319.49 million, from RM159.42 million a year earlier. It said this was largely driven by increased brokerage fees, higher net interest income, trading and investment income, as well as management fee income.
Diversified conglomerate Sunway Bhd is back in the black in its third-quarter, with a net profit of RM132.83 million from a net loss of RM6.71 million in the immediate preceding quarter, following the resumption of business activities on the lifting of movement restrictions imposed earlier this year to curb the pandemic's spread. The group's revenue for 3QFY20 rebounded to RM1.03 billion from RM556.64 million in 2QFY20.. Almost all business segments registered improved profit contributions, the group noted, except for its property development and other segments.
Paramount Corp Bhd returned to the black with a net profit of RM19.82 million in its 3QFY20, after the property developer slipped into a net loss of RM3.7 million in the preceding quarter ended June 30. The improved earnings came as quarterly revenue tripled to RM218.87 million from RM64.20 million in 2QFY20, its bourse filing showed, following the resumption of construction activities for a full quarter, coupled with strong sales from new property launches.
Boustead Heavy Industries Corp Bhd (BHIC) has lodged a report with the Malaysian Anti-Corruption Commission (MACC) on possible irregularities in the RM9 billion littoral combat ship project, which its associate Boustead Naval Shipyard Sdn Bhd (BNS) is undertaking. BHIC said the findings of the forensic audit, which was commissioned in February 2020, were handed over to the MACC in September.
TDM Bhd's CEO Zainal Abidin Shariff, 53, has resigned from the position with immediate effect, over disagreements with its chairman. The oil palm planter and healthcare operator said Zainal Abidin and group chairman Raja Datuk Idris Kamarudin disagreed over trade contract issues, practices and queries involving its subsidiary’s palm oil trading activities.