MRCB, F&N, Notion VTec, Hume, United Malacca, IOI Corp, Dialog, United Plantations, MAHB, Guan Chong, and Hong Leong Industries

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KUALA LUMPUR (Nov 12): Based on corporate announcements and news flow today, stocks in focus on Tuesday (Nov 13) may include Malaysian Resources Corp Bhd, Fraser & Neave Holdings Bhd, Notion VTec Bhd, Hume Industries Bhd, United Malacca Bhd, IOI Corp Bhd, Dialog Bhd, United Plantations Bhd, Malaysia Airports Holdings Bhd, Guan Chong Bhd and Hong Leong Industries Bhd.

Malaysian Resources Corp Bhd (MRCB)’s indirect wholly-owned subsidiary MRCB Lingkaran Selatan Sdn Bhd (MLSSB) has inked a termination and settlement agreement with the Government in relation to the Concession Termination of the Eastern Dispersal Link Expressway (EDL).

Pursuant to the termination agreement, the Government will pay MLSSB, which MRCB owns via MRCB Prasarana Sdn Bhd, RM1.32 billion, subject to terms and conditions in the termination agreement.

Both MLSSB and the Government have also agreed that the termination agreement came into effect on Jan 1, 2018.

Fraser & Neave Holdings Bhd (F&N) expects 90% of its beverage products to be subjected to Malaysia's proposed sugar tax on sweetened beverages. But the impact of the tax on F&N's business cannot be ascertained at this juncture, as the company awaits more details on the tax, according to its chief executive officer Lim Yew Hoe.

Precision parts manufacturer Notion VTec Bhd has received RM44.37 million from its insurer AXA Affin General Insurance Bhd as the final settlement of its claims for fire damage to its main plant in Klang, Selangor, that amounted to RM159.37 million.

Hume Industries Bhd has proposed a rights issue to raise up to RM172.5 million to help pay debts and fund working capital needs.

The group said the five-year redeemable convertible unsecured loan stocks (RCULS) issue with a nominal value of RM1 each will be offered on the basis of 36 RCULS for every 100 existing shares held. The conversion price of the RCULS will be determined at a later date.

Plantation group United Malacca Bhd said the proposed disposal of four of its oil palm estates in Melaka and Negeri Sembilan will not result in retrenchment of staff and workers.

United Malacca confirmed a report by The Edge Weekly that it is considering disposing of the four estates through an open tender to be handled by WTW Real Estate Sdn Bhd.

It added that the gross proceeds from the proposed disposal is expected to be used mainly for its development expenditure, particularly for its Sulawesi plantation in Indonesia.

It also announced its net profit fell 4.1% to RM94.85 million in its third quarter ended Sept 30, 2018 (3QFY18), from RM98.93 million a year ago, mainly due to lower palm prices.

Revenue contracted by 8.1% to RM340.86 million during the quarter from RM370.82 million in 3QFY17. The group declared an interim dividend of 20 sen per share and a special dividend of 10 sen per share, payable on Dec 12.

For the nine-month cumulative period (9MFY18), net profit slipped 2.6% to RM282.6 million from RM290.21 million in 9MFY17. Cumulative revenue fell 11.7% to RM976.33 million from RM1.11 billion a year ago.

IOI Corp Bhd posted a 60% decline in net profit for the first quarter ended Sept 30, 2018 (1QFY19) to RM143.8 million from RM360 million a year ago, on lower operating profit and a currency translation loss on foreign currency-denominated borrowings and deposits.

The group's 1QFY19 earnings per share declined y-o-y to 2.29 sen from 5.73 sen. Revenue for 1QFY19 saw a slight uptick of 0.54% to RM1.88 billion from RM1.87 billion a year ago.

Dialog Bhd’s net profit for its first quarter ended Sept 30, 2018 (1QFY19) fell 29% to RM114.64 million from RM160.93 million a year ago on the absence of fair value gain and lower revenue from its Malaysian operations.

Earnings per share was down to 2.03 sen for 1QFY19 from 2.86 sen for 1QFY18. Quarterly revenue shrank 11.3% to RM690.89 million from RM778.66 million a year ago due to lower downstream activities, particularly in engineering, construction and fabrication works.

United Plantations Bhd’s net profit fell 4.1% to RM94.85 million in its third quarter ended Sept 30, 2018 (3QFY18), from RM98.93 million a year ago, mainly due to lower palm prices.

Revenue contracted by 8.1% to RM340.86 million during the quarter from RM370.82 million in 3QFY17, according to the group’s bourse filing today.

The group declared an interim dividend of 20 sen per share and a special dividend of 10 sen per share, payable on Dec 12.

Malaysia Airports Holdings Bhd's (MAHB) total network of airports saw a 0.5% year-on-year (y-o-y) growth for October to 10.7 million passenger movements, mainly contributed by international passenger movements.

For the 12 months to October, 132.3 million passenger movements were recorded, up 4.4% from 126.8 million in the previous corresponding period.

MAHB said its Malaysian airports registered a 1.3% decline in y-o-y growth to 7.8 million passenger movements. Meanwhile, passenger movements at its Istanbul Sabiha Gokcen International Airport (SGIA) in Turkey grew 5.6% y-o-y to 2.9 million passengers, as international passenger movements saw double-digit growth of 15.5% while domestic passenger movements increased 0.7%.

Cocoa ingredients manufacturer Guan Chong Bhd recorded a 47.7% increase in its net profit for the third quarter ended Sept 30, 2018 (3QFY18) to RM43.87 million from RM29.7 million a year earlier, as revenue rose on higher sales, increased bean grinding and lower input costs.

Revenue in the quarter grew 10.3% to RM598.78 million from RM542.86 million in the previous year's corresponding quarter as the sales volume for cocoa ingredients grew 19.9%.

For the nine months ended Sept 30, 2018 (9MFY18), net profit more than doubled to RM126.23 million from RM58.33 million in the previous corresponding period.

Lower contribution from an associate company dragged Hong Leong Industries Bhd’s net profit for the first quarter ended Sept 30, 2018 (1QFY18) by 15.54% to RM70.05 million from RM81.86 million a year ago.

Earnings per share for the quarter fell to 22.33 sen from 26.44 sen previously. Revenue however was up 6.91% to RM672.91 million from RM629.43 million, Hong Leong Industries said.