KUALA LUMPUR (Aug 20): Based on corporate announcements and news flow today, companies in focus on Tuesday (Aug 21) may include the following: Utusan Melayu (Malaysia) Bhd, Petrol One Resources Bhd, Eita Resources Bhd, Gadang Holdings Bhd, Dayang Enterprise Holdings Bhd, Petronas Dagangan Bhd, Allianz Malaysia Bhd, United Plantations Bhd, Eastern and Oriental Bhd (E&O), Velesto Energy Bhd, Amway (Malaysia) Holdings Bhd and Rex Industry Bhd.
Utusan Melayu (Malaysia) Bhd has been classified as a Practice Note 17 (PN17) company as it has defaulted in its principal and profit payment to Maybank Islamic Bhd and Bank Muamalat Malaysia Bhd, totalling RM1.18 million, and is unable to provide a solvency declaration to Bursa Malaysia.
The Malay-language newspaper and magazine publisher said that pursuant to the PN17, the company is required to submit a regularisation plan to the Securities Commission if the plan will result in a significant change in business direction or policy of the company, or to Bursa Malaysia if the plan will not result in a significant change in the business direction or policy of the company — within 12 months from today.
Practice Note 17 (PN17) entity Petrol One Resources Bhd said it has submitted an appeal to Bursa Malaysia Securities against the latter’s decision to delist its securities from the Main Market of the local bourse slated for this Friday (Aug 24).
“Given that the appeal was submitted within the appeal timeframe (by Aug 20), the removal of the securities of the company from the official list of Bursa Securities on Aug 24 shall be deferred, pending decision by Bursa Securities on the appeal,” the bunkering and storage company which offers advisory services for floating storage and offloading operation, said.
Eita Resources Bhd's 60%-owned unit has won a RM67.22 million contract to build a 132kV substation and to undertake the extension of a 275kV substation in Kemena, Bintulu, Sarawak, which expected to start on Sept 3.
Eita said its unit, Transsystem Continental Sdn Bhd, received the notification of award from Sarawak Energy Bhd's subsidiary, Syarikat SESCO Bhd.
Gadang Holdings Bhd has bagged an RM86.09 million contract from TRX City Sdn Bhd, a company owned by the Ministry of Finance and the master developer of the RM40 billion Tun Razak Exchange (TRX) development here, to undertake public realm infrastructure work (Phase 1) at TRX, which will commence on Sept 1, with completion by the third quarter of 2019.
Dayang Enterprise Holdings Bhd has secured two five-year maintenance, construction and modification contracts via its subsidiary Dayang Enterprise Sdn Bhd (DESB) from Kebabangan Petroleum Operating Company Sdn Bhd and Repsol Oil & Gas Malaysia Ltd (Repsol O&G).
Both contracts commenced from July 17 this year and will expire on July 16, 2023, with an option to extend for another one year.
Petronas Dagangan Bhd (PetDag) saw its net profit rise 27.8% to RM314.42 million in the second quarter ended June 30, 2018 (2QFY18) from RM246.04 million a year ago, mainly due to higher margin which resulted from increasing Mean of Platts Singapore (MOPS) price trend, lower product and freight costs, as well as an increase in other income arising from insurance proceeds claim received by a subsidiary and this was partially offset by higher advertising and promotion expenses.
Quarterly revenue also grew 10% to RM7.28 billion from RM6.62 billion in 2QFY17.
The group declared an interim dividend of 16 sen per share, payable on Sept 19.
Allianz Malaysia Bhd's net profit jumped 35.2% year-on-year in its second quarter ended June 30, 2018 (2QFY18) to RM89.87 million from RM66.48 million, as the composite insurer's revenue strengthens.
Revenue rose 9.5% y-o-y to RM1.31 billion from RM1.19 billion, as gross earned premiums and investment income rose by RM95.4 million and RM17.6 million respectively.
United Plantations Bhd's net profit fell 22.4% to RM87.25 million in the second quarter ended June 30, 2018 (2QFY18), from RM112.41 million a year ago, as revenue dropped 12.8% to RM309.93 million versus RM355.26 million in 2QFY17.
For the cumulative six months ended June 30, 2018 (1HFY18), United Plantations saw its net profit slide 1.9% year-on-year to RM187.75 million from RM191.28 million while revenue fell 13.6% to RM635.47 million compared with RM734.5 million a year ago.
Eastern and Oriental Bhd (E&O)’s net profit for the first quarter for the financial year ended June 30, 2018 (1QFY19) fell 34% to RM14.12 million from RM21.24 million a year ago, despite a 15% rise in revenue, as it was impacted by unrealised foreign exchange losses and losses from joint ventures (JVs).
Revenue rose 15.3% to RM199.99 million from RM173.44 million, on stronger property segment turnover.
Velesto Energy Bhd has halved its net loss in the second quarter ended June 30, 2018 (2QFY18) to RM24.1 million from RM51 million in the year-ago quarter mainly on lower operating cost, interest as well as depreciation.
Quarterly revenue fell 20% year-on-year (y-o-y) to RM111.8 million from RM139.9 million, due to both its drilling services and oilfield services reporting lower revenue due to lower rig utilization and reduced threading activities in Labuan and China.
Amway (Malaysia) Holdings Bhd saw its second-quarter net profit fall 49.48% to RM 7.46 million from RM14.77 million a year ago, due to the lower sales and higher import costs due to the weaker ringgit. However, these were partially offset by lower Amway Business Owner (ABO) bonuses and sales incentives in line with lower sales and qualification tracking.
Quarterly revenue dropped 9.63% to RM227.78 million from RM252.06 million a year ago, due to ABOs holding back purchases after the government’s announcement on the zero-rating of the GST, as well as 6% sales discount offered to mitigate the holding back of purchases.
The group has declared a dividend of 5 sen per share, payable on Sept 19.
REX Industry Bhd has proposed to seek shareholders’ approval to allow it to purchase up to 10% of its issued share capital at the forthcoming annual general meeting.
REX said the proposed share buy-back will enable it to have an additional option to utilise its surplus financial resources. In addition, the purchased shares may be held as treasury shares and resold on Bursa Malaysia, with the intention of realising a potential gain without affecting the total issued shares of the company.