KUALA LUMPUR (Aug 15): Based on corporate announcements and news flow today, stocks in focus tomorrow may include: Public Bank Bhd, Press Metal Aluminium Holdings Bhd, KLCCP Stapled Group, CIMB Group Holdings Bhd, Petronas Chemicals Group Bhd, Petronas Gas Bhd, Sam Engineering & Equipment (M) Bhd, Oriental Interest Bhd, Scientex Bhd, Mudajaya Group Bhd and MK Land Holdings Bhd.
Public Bank Bhd's net profit for the second quarter ended June 30, 2018 rose 4.88% to RM1.4 billion from RM1.33 billion a year earlier, due to higher net interest income, higher income from Islamic banking business, lower loan impairment allowance, and higher net fee and commission income, which were partially offset by lower investment and other operating income.
Quarterly revenue rose to RM5.44 billion versus RM5.17 billion a year earlier.
For the cumulative six months, Public Bank's net profit rose to RM2.8 billion from RM2.58 billion a year ago, on the back of revenue of RM10.79 billion, against RM10.2 billion previously.
Press Metal Aluminium Holdings Bhd’s second quarter net profit rose 7% to RM160.6 million from RM150.17 million a year ago, mainly due to higher aluminium price and the strengthening of the US dollar against the ringgit.
Quarterly revenue surged 24.67% to RM2.44 billion from RM1.96 billion. Cumulative net profit for the first two quarters came in at RM311.08 million, up 4.31% from RM298.22 million in the same period last year.
Revenue for the six months surged 17.32% to RM4.56 billion from RM3.89 billion previously.
KLCCP Stapled Group, comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (REIT), saw its net profit rise a marginal 0.7% to RM179.15 million in the second quarter ended June 30, 2018 (2QFY18) from RM177.96 million a year ago, reflecting the 100% occupancy in Menara ExxonMobil since April 2017, as well as higher rental rates and occupancy rates.
Quarterly revenue rose 2.2% to RM345 million from RM337.52 million in 2QFY17, contributed mainly from the additional contracts in the management services segment and stronger revenue from the hotel segment.
For the cumulative six months (1HFY18), the group's net profit grew 1.4% to RM359.82 million from RM354.68 million a year ago, while revenue increased 2.4% to RM690.11 million from RM674.18 million in 1HFY17.
CIMB Group Holdings Bhd’s 92.5%-owned Indonesian arm, PT CIMB Niaga Tbk, reported a 28.1% year-on-year (y-o-y) rise in its consolidated net profit to IDR1.8 trillion for the first half of 2018, on the back of higher non-interest income (NII) and lower provision expenses.
The stronger net profit translated into an earnings per share of IDR70.54. NII grew 32.6% to IDR1.9 trillion, while provision expenses fell 27.1%.
It said its strategy to focus on the mortgage and Small Medium Enterprise segments is gaining traction, with each segment growing by 8.9% and 6.2% y-o-y respectively, while our corporate loans grew by 8.8% y-o-y.
Petronas Chemicals Group Bhd's net profit rose 42% to RM1.37 billion in the second quarter ended June 30, 2018 (2QFY18) from RM964 million a year ago, in tandem with higher earnings before interest, tax, depreciation and amortisation (Ebitda), supported by higher interest income and lower tax expenses.
Revenue increased 19.6% to RM4.73 billion from RM3.96 billion mainly driven by higher product prices and sales volumes, partially offset by the strengthening of the ringgit against the US dollar.
For the cumulative six months, net profit grew to RM2.44 billion from RM2.26 billion a year ago, while revenue rose 11.9% to RM9.68 billion from RM8.65 billion earlier.
Petronas Gas Bhd's (PetGas) net profit for the second quarter ended June 30, 2018 rose 20% to RM509.33 million from RM425.33 million a year earlier, on the back of higher revenue and lower tax expenses negated by higher finance cost.
Revenue for the quarter climbed to RM1.36 billion from RM1.17 billion previously.
For the six months ended June 30, PetGas' net profit rose to RM992.55 million from RM888.56 million a year ago. Revenue for the period stood at RM2.71 billion versus RM2.34 billion in the previous year.
On prospects, PetGas said it is in continuous discussion with the Energy Commission to finalise the tariff guidelines for gas transportation and regasification services beyond 2018.
Sam Engineering & Equipment (M) Bhd's net profit for the first quarter ended June 30, 2018 (1QFY19) rose 87% to RM17.59 million from RM9.39 million a year earlier, thanks to better performance of both its aerospace and equipment segments, which recorded improved revenues.
Revenue for the quarter grew 27% year-on-year to RM178.77 million from RM141.32 million in 1QFY18, as it posted an increase in deliveries for casing and beam products in the aerospace segment, and as its hard disk drive (HDD) businesses in the equipment segment picked up pace.
Oriental Interest Bhd’s unit OIB Properties (K) Sdn Bhd is buying a parcel of agricultural land measuring 61.75 ha in Bandar Kulim, Kedah, from MBAS Jaya Sdn Bhd for RM36.45 million or RM5.50 per sq ft, to increase its land bank.
The group said the acquisition is in line with its strategy to focus on development in the northern region of Peninsular Malaysia and to continuously replenish and expand its existing land bank in strategic locations.
Scientex Bhd is buying two contiguous pieces of freehold agriculture land measuring a combined 208.9 acres in Alor Gajah, Melaka for RM68.25 million or RM7.50 per sq ft. It plans to develop the land into a mixed property development.
Scientex said it is currently too preliminary to ascertain costs and values, but believes the proposed acquisition will provide it with adequate landbank to sustain its property development over the medium and longer term.
Mudajaya Group Bhd (MCB) said the RM118.6 million contract it was offered to build a 16-storey office complex called Hevea Tower in Sungai Buloh, Selangor, has been terminated by KLIA Consortium on Aug 13.
The job was part of a proposed development spanning over 2,330 acres of land owned by the Malaysian Rubber Board (Lembaga Getah Malaysia) – which was supposed to be completed by September 2019.
MCB said it will submit the claims for the outstanding amount including any other costs incurred to close the project’s account within the stipulated time.
MK Land Holdings Bhd is teaming up with Menteri Besar Inc (Perak) (MB Inc) to jointly develop a piece of land totalling 226 acres in Kampar and Kinta, belonging to the Perak State government, into a mixed development consisting of affordable housing and commercial units.
For this, its wholly-owned Ritma Mantap Sdn Bhd has entered into a Memorandum of Understanding with MB Inc to participate in the joint venture (JV), whereby MB Inc is to hold a 15% stake in the proposed development.
MK Land will carry out evaluations, technical assessments and financial feasibility study and is responsible for the entire development financing, which will be funded by internal funds and/or bank borrowings.
The proposed development is expected to be carried out and completed in phases over a period of 10 years with an extension of five years.