Stocks In Focus MY (BIMB Hldgs, MUI, UOA Development) – 26/11/14
BIMB (5258), MUIIND (3891), UOADEV (5200)
BIMB 3Q14 Earnings Surges 66%
For the third quarter ended 30 September, BIMB Holdings reported a 7 percent rise in revenue to RM744.5 million while net profit surged 66 percent to RM125.3 million, boosted by its acquisition of 49 percent interest in Bank Islam Malaysia (BIM).
For the nine-month period, profit before zakat and taxation fell marginally by 0.5 percent to RM595.5 million mainly due to financing cost of the sukuk raised by BIMB to partly fund the equity acquisition. Net profit for 9M14 jumped 72.7 percent to RM378.4 million, mainly due to its stake in BIM.
Consequently, earnings per share for 3Q14 and 9M14 grew 18.7 percent and 23.3 percent to 8.39 sen and 25.34 sen per share respectively.
Significance: The group has declared an interim dividend of 14.7 sen per share for the period, versus 3.5 sen in the preceding year. Going forward, BIMB notes that outlook is somewhat mixed and has plans to expand its Islamic banking segment by opening another eight branches.
MUI In Talks To Sell Certain Substantial Assets
Malayan United Industries (MUI) announced that it is in “serious discussions” to explore the possibilities of selling certain substantial assets, to realise the values of these assets.
Full disclosure of the transaction will be made, once an agreement had been reached. The group also denied reports that its freehold Corus Hotel in Hyde Park, London was up for sale.
For the nine-month ended 30 September, revenue shrank 6.2 percent to RM441.2 million as the group swung into the red, partially attributable to the absence of a one-off gain on disposal of leasehold property in 9M13.
Significance: MUI wishes to remind its shareholders that there is no certainty as to the outcome of the discussion and said that moving forward, it would continue to assess potential investment opportunities to enhance shareholder value.
RHB Research Expects UOA To Achieve RM1.7b New Sales By Year-end
RHB Research said UOA Development, which saw its 3Q14 results come in within expectations, could achieve a total of RM1.7 billion new sales by year-end as more improvements are expected from its property projects.
Although it is a 15 percent drop from last year’s RM2 billion new sales, the research house noted that RM1.7 billion would be a decent level considering the challenging operating environment this year.
UOA’s new sales jumped to RM672 million in the third quarter as the signing of the sales and purchase agreements took place during this quarter. With no other launches planned for the fourth quarter, RHB Research expects the conversion into sales to continue in the final few months.
Significance: New sales for the nine-month period ended 30 September stood at RM1.4 billion while unbilled sales increased to RM1.8 billion, as a result of strong sales in 3Q14. RHB Research has maintained its ‘Buy’ call on the group with a target price of RM2.40.
http://www.sharesinv.com
BIMB (5258), MUIIND (3891), UOADEV (5200)
BIMB 3Q14 Earnings Surges 66%
For the third quarter ended 30 September, BIMB Holdings reported a 7 percent rise in revenue to RM744.5 million while net profit surged 66 percent to RM125.3 million, boosted by its acquisition of 49 percent interest in Bank Islam Malaysia (BIM).
For the nine-month period, profit before zakat and taxation fell marginally by 0.5 percent to RM595.5 million mainly due to financing cost of the sukuk raised by BIMB to partly fund the equity acquisition. Net profit for 9M14 jumped 72.7 percent to RM378.4 million, mainly due to its stake in BIM.
Consequently, earnings per share for 3Q14 and 9M14 grew 18.7 percent and 23.3 percent to 8.39 sen and 25.34 sen per share respectively.
Significance: The group has declared an interim dividend of 14.7 sen per share for the period, versus 3.5 sen in the preceding year. Going forward, BIMB notes that outlook is somewhat mixed and has plans to expand its Islamic banking segment by opening another eight branches.
MUI In Talks To Sell Certain Substantial Assets
Malayan United Industries (MUI) announced that it is in “serious discussions” to explore the possibilities of selling certain substantial assets, to realise the values of these assets.
Full disclosure of the transaction will be made, once an agreement had been reached. The group also denied reports that its freehold Corus Hotel in Hyde Park, London was up for sale.
For the nine-month ended 30 September, revenue shrank 6.2 percent to RM441.2 million as the group swung into the red, partially attributable to the absence of a one-off gain on disposal of leasehold property in 9M13.
Significance: MUI wishes to remind its shareholders that there is no certainty as to the outcome of the discussion and said that moving forward, it would continue to assess potential investment opportunities to enhance shareholder value.
RHB Research Expects UOA To Achieve RM1.7b New Sales By Year-end
RHB Research said UOA Development, which saw its 3Q14 results come in within expectations, could achieve a total of RM1.7 billion new sales by year-end as more improvements are expected from its property projects.
Although it is a 15 percent drop from last year’s RM2 billion new sales, the research house noted that RM1.7 billion would be a decent level considering the challenging operating environment this year.
UOA’s new sales jumped to RM672 million in the third quarter as the signing of the sales and purchase agreements took place during this quarter. With no other launches planned for the fourth quarter, RHB Research expects the conversion into sales to continue in the final few months.
Significance: New sales for the nine-month period ended 30 September stood at RM1.4 billion while unbilled sales increased to RM1.8 billion, as a result of strong sales in 3Q14. RHB Research has maintained its ‘Buy’ call on the group with a target price of RM2.40.
http://www.sharesinv.com
