KUALA LUMPUR (May 25): Based on corporate announcements and news flow today, companies in focus tomorrow (Tuesday, May 26) are Uzma, IFCA MSC, E&O, UOA REIT, UEM Edgenta, Tiong Nam Logistics, Hap Seng, Supermax, Kulim, Signature, Boustead, Carlsberg, FGV and Cocoaland.
Uzma Bhd today announced its 40% associate company Sazma Aviation Sdn Bhd has secured two contracts from Petronas Carigali Sdn Bhd for the provision of aviation services, collectively worth RM166.5 million.
The first is a six-month contract worth RM12.5 million to provide helicopter services for Petroliam Nasional Bhd's (Petronas) well drilling campaign at the east coast of Sabah. Effective from May 15, the contract is expected to complete on Nov 14.
The second contract, valued at RM154 million, is for the provision of aviation services for five years to Petronas Sabah Operations. The contract, which will commence from March 23 this year and end in March 22, 2020, carries a one-year extension option.
Uzma (fundamental: 1.30; valuation: 1.50) said the contracts are expected to contribute positively to the earnings of the group for the financial year ending December 31, 2015 and in the future.
Uzma also saw its net profit drop 4.4% to RM8.05 million or 3.01 sen a share for its first quarter ended March 31, 2015 (1QFY15) from RM8.43 million or 6.38 sen a share a year earlier, as higher gross profit was not enough to offset higher administrative and operating expenses and higher finance costs.
The group's revenue for 1QFY15, however, grew 52% to RM148.53 million in 1QFY15 from RM97.72 million in 1QFY14, contributed by long-term contracts. Gross profit increased by RM13.8 million or 62.1% year-on-year in 1QFY15.
IFCA MSC Bhd fell as much as 18.6% today to a low of RM1.31 before regaining to close the day at RM1.38, still down 24 sen or 14.8%.
The stock has been falling since it announced the resignation of its chief financial officer, despite the group posting a huge surge in net profit of about 23 times in its latest quarterly results (from RM0.42 million in 1Q14 to RM9.69 million in 1Q15 ended 31 March 2015).
The recent share price drop even courted an unsual market enquiry from Bursa Malaysia today, to which IFCA MSC (fundamental: 3, valuation: 0.8) said it was unaware of any reason behind it.
Eastern & Oriental Bhd (E&O)'s net profit for its fourth quarter of its 2015 financial year has doubled to RM100.76 million from RM50.5 million in its previous corresponding quarter, due to substantial divestment gains.
Revenue, however, declined nearly 38% to RM143.04 million from RM229.69 million a year ago.
Cumulative net profit for the FY15 was up 34.5% to RM152.35 million from RM113.24 million in FY14, even though revenue was 9.6% lower at RM449.5 million against RM497.14 million in FY14.
In a filing to Bursa Malaysia, E&O (fundamental: 1; valuation: 0.8) said that its rise in the fourth quarter's profit was driven by its investments and others segment.
The increase in operating profit in the current financial year, meanwhile, is mainly due to a gain of RM100.533 million recognised during the current quarter, comprising of a gain of RM56.242 million on the disposal of 49% equity interest and a gain of RM44.3 million on re-measurement of its remaining 51% equity interest in Patsawan Properties Sdn Bhd.
UOA Real Estate Investment Trust (REIT) registered a largely flat total income available for distribution of RM11.69 million in its first quarter ended March 31 (1QFY15), compared with RM11.75 million in the same period last year.
It also made a provision to distribute RM11.10 million or 2.63 sen per unit for unitholders for the quarter under review, which is 0.01 sen or 0.38% down from the 2.64 sen per unit it announced for the previous corresponding quarter.
UOA REIT (fundamental: 1.0; valuation: 2.3) told Bursa its total expenditure for the quarter has increased by 8%, mainly due to increases in property operating expenses and borrowing costs.
Revenue for the 1QFY15 was RM22.78 million, up 3.34% from RM22.05 million last year from a 3% improved in gross rental from revision in rental rates and steady occupancy rates of its investment properties.
UEM Edgenta Bhd - formerly Faber Group Bhd- said its net profit for the financial year ended March 31, 2015 (1QFY15) rose 27.5% on-year to RM37.17 million or 4.57 sen per share from RM29.15 million or 3.58 sen per share, on higher revenue.
Its filing to Bursa today showed its revenue grow 8.1% to RM699.29 million from RM646.85 million, supported by greater contribution from its property development division, infrastructure services and integrated facilities management.
At the conclusion of its annual general meeting today, UEM Edgenta (fundamental: 2.5; valuation: 1.1) managing director and chief executive officer Azmir Merican said the group expects to see growth this year on the back of key initiatives that were recently announced in the 11th Malaysia Plan.
"We are seeing opportunities in the 11th Malaysia Plan announcement. Examples would be the Pan Borneo Highway, SKLIA Expressway and Damansara-Shah Alam Highway," he told reporters.
Tiong Nam Logistics Holdings Bhd saw its net profit rise 20.2% on-year to RM36.96 million or 8.79 sen per share in the fourth quarter ended March 31, 2015 (4QFY15) from RM30.75 million or 7.31 sen per share previously, mainly on improved revenue from property development.
Its revenue rose 52.86% to RM189.12 million in 4QFY15 compared to RM123.72 million in 4QFY14. It also recommended a single-tier dividend of 4 sen per share in respect of FY15, subject to shareholders' approval at its forthcoming annual general meeting. Comparatively, it declared a 2.5 sen dividend in the same period last year.
Full year (FY15) net profit was, however, flat at RM74.295 million or 17.66 sen per share compared with RM74.62 million or 17.75 sen per share in FY14, despite revenue improving by 15.6% to RM616.31 million from RM533.13 million in FY14.
Tiong Nam (fundamental: 1.1; valuation: 1.8) said the property development segment boasted a 207.3% increase in revenue to RM84.6 million in 4QFY15 compared to RM 27.5 million in 4QFY14. The company's core business segment as well as logistics and warehousing services segment also recorded an increase in revenue.
Hap Seng Plantations Holdings Bhd saw its net profit plummet 49% to RM21.49 million or 2.69 sen per share in the first quarter of financial year 2015 ended March 31, 2105 (1QFY15), compared to RM42.23 million, or 5.28 sen per share in the previous corresponding quarter as low palm oil prices, lower sales of palm kernel (PK) and higher production costs hit earnings.
Hap Seng Plantations (fundamental: 2.7; valuation: 2) reported a nearly 18% drop in revenue to RM113.81 million in 1QFY15 compared to RM138.43 million in the first quarter of financial year 2014 (1QFY14).
Supermax Corp Bhd posted a net profit of RM24.95 million in the three months period ended Mar 31, 2015, a decline of 6.2% from RM26.6 million in the same period in the last financial year due to lower average selling prices.
This translated to a lower earnings per share (EPS) of 3.67 sen compared to 3.91 sen a year earlier.
In a filing with Bursa, Supermax (fundamental: 1.0; valuation: 1.8) said revenue was at RM223.21 million, down 4% compared to RM232.27 million. Supermax has changed its financial year end from Dec 31 to June 30.
Kulim (Malaysia) Bhd's net profit for the first quarter ended March 31, 2015 (1QFY15) surged over 35 times to RM1.36 billion or 102.51 sen a share from RM38.14 million or 2.98 sen a share a year ago, due to a gain of RM1.34 billion from the disposal of its stake in New Britain Palm Oil Ltd (NBPOL).
Kulim (fundamental: 0.85; valuation: 2) had on Feb 26 this year completed the disposal of its entire equity interest in NBPOL to Sime Darby Bhd (fundamental: 1; valuation: 1.4) for £7.15 per share or £525.4 million (RM2.75 billion).
Stripping out the disposal gain, Kulim's profit from continuing operations would have been 11.6% lower to RM15.03 million in 1QFY15 from RM17 million a year ago.
Revenue for 1QFY15, meanwhile, declined 2.9% to RM268.17 million from RM276.2 million in 1QFY14, dragged by poor performance of its plantation division, which registered a 30.5% and an 81% slump in revenue and pre-tax profit respectively.
Signature International Bhd saw a net profit of RM13.39 million or 11.2 sen per share in the third quarter ended March 31, 2015 (3QFY15), up 225% from RM4.12 million or 3.5 sen per share a year earlier, on higher revenue from its kitchen and wardrobe segment and improved margin.
Revenue increased 109% to RM87.54 million from RM41.9 million, which Signature (fundamental: 2.3; valuation: 1.5) said was due to higher revenue from project division of kitchen and wardrobe segment and manufacturing of glass and aluminium products.
Signature proposed a first interim dividend of four sen per share for FY15, payable on July 2, 2015.
For the nine-month period (9MFY15), Signature posted a net profit of RM32.25 million or 26.9 sen per share, up 256% from RM9.06 million or 7.6 sen per share on higher revenue and margins.
Revenue rose 95% to RM217.97 million from RM111.83 million in 9MFY14. Project division of kitchen and wardrobe segment has been the main contributor to the increase.
Boustead Holdings Bhd's net profit for the first quarter ended March 31, 2015 (1QFY15) has plunged 99.8% to RM100,000 or 0.01 sen per share from RM56.4 million or 5.45 sen per share a year ago, on lower revenue.
Revenue was down 24.3% to RM1.89 billion from RM2.499 billion in 1QFY14, its filing to Bursa Malaysia today showed.
Despite the weaker financials, Boustead (fundamental: 0.65; valuation: 2) declared its first interim dividend of 5 sen per share in 1QFY15, which will be paid on June 30, 2015.
In a media statement, Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said 1QFY15 has been a challenging period as external pressures and a general 'wait-and-see' mood in the consumer market is definitely bearing down on the group's earnings.
Segmentally, Boustead's plantation revenue registered an 80% slump in pre-tax profit and a 32.4% drop in revenue, which the group blamed on declining fresh fruit bunch (FFB) production (down 16%) and bearish palm product prices.
Carlsberg Brewery Malaysia Bhd's (fundamental: 2.3; valuation: 2.1) net profit fell 9.8% to RM47.23 million or 15.45 sen per share in the first quarter ended March 31, 2015 (1QFY15) from RM52.33 million or 17.12 sen a year ago, as customers opted to maintain minimal stocks ahead of the goods and services tax (GST) implementation.
Revenue dropped 3.7% to RM429.45 million in 1QFY15 from RM445.94 million in 1QFY14.
Felda Global Ventures Holdings Bhd (FGV) (fundamental: 1.55; valuation: 1.4) ventured into the Philippines markets to supply its premier oil palm seeds to planters in Mindanao.
In a statement, FGV said its subsidiary Felda Agriculture Services Sdn Bhd (FASSB) has signed a memorandum of collaboration with Bali Oil Palm Produce Corporation (BOPPC) to explore the possibility of collaborating with each other in agricultural related products and services.
According to FGV, FASSB is committed to deliver the first oil palm seeds to Philippine Coconut Authority (PCA) and BOPPC in 2015. FASSB will deliver 110,000 DxP oil palm germinated seeds to PCA and one million DxP oil palm germinated seeds to BOPPC commencing June 2015, FGV said.
FGV also believes the collaboration will be a springboard for Mindanao to become one of the major world-class palm oil exporters together with FGV and other world's top producer.
Snacks and candies manufacturer Cocoaland Holdings Bhd said it has decided to reject Navis Asia Fund VII, LP's takeover offer of RM377.52 million or RM2.20 per share.
In a statement to the bourse today, Cocoaland said its board of directors have deliberated on the proposed acquisition by Navis Asia VII Management Company Ltd, who made the offer on behalf of Navis Asia Fund VII, and "unanimously rejected the offer".
"The offer price for the proposed acquisition was RM377.52 million (RM2.20 per share)," it added.
Last Friday, Cocoaland (fundamental: 2.5; valuation: 1.4) said it had received a 'non-binding indicative offer letter' from Navis Asia VII to acquire all its assets and liabilitites.
The offer price of the acquisition was not disclosed back then, and the counter was suspended from trading until 5pm on Monday; it will resume trading tomorrow.
Separately, Cocoaland saw its net profit more than double to RM8.01 million or 4.67 sen per share for the quarter ended Mar 31, 2015 (1QFY15) from RM3.41 million or 1.99 sen per share a year ago, mainly on increased trading volume from its contract manufacturing of hard candy production.
Revenue grew only 14.32% to RM67.74 million in 1QFY15 from RM59.25 million last year, but lower advertisement expense incurred and lower impairment of receivables also facilitated better profit margin for the group, the filing showed.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)