BONIA (9288) : Stocks In Focus MY (Bonia, Felda Global Venture Hldgs, MMC) – 28/11/14
BONIA, BONIA (9288), FGV, FGV (5222), MMCCORP, MMCCORP (2194)
Bonia 1Q15 Earnings Down On Operating Costs
For the first quarter ended 30 September, Bonia Corporation posted a marginal 1.5 percent rise in turnover to RM170.9 million, underpinned by better sales from the Braun Buffel brand and export sales to Vietnam and Indonesia.
However, net profit for the period shrunk 18.7 percent to RM12.9 million due to higher operating costs, which rose 3.5 percent more than the relative increase in revenue.
The group noted that it continues to see sales improvement in Vietnam and Indonesia, but recorded a negative growth in revenue for the Malaysian market due to weaker consumer sentiment as well as a decline in exports to Saudi Arabia.
Significance: The company anticipates more challenging times ahead, expecting softer consumer demand with slower growth in the Malaysian economy next year as well as a temporary impact from the implementation of The implementation of the goods and services tax. The group shared that it will continue to focus on expansion plans to overseas markets in particularly Indonesia and Cambodia.
FGV Hit By Land Lease, Posts 3Q14 Losses
For the third quarter ended 30 September, Felda Global Ventures Holdings (FGV) recorded its first net loss of RM9.3 million compared to earnings of RM22.9 million in 3Q13, despite a 34.3 percent jump in revenue to RM4.3 billion.
The group’s performance was dragged down by a negative RM98.9 million fair value change in land lease agreement (LLA) which impacted earnings from the plantation segment, as well as RM105.5 million of commodity realised and unrealised losses linked to forward and future contracts in its downstream operations.
A source has warned that FGV’s profits in the coming quarters were expected to be pulled down by the group’s 99-year LLA with the Federal Land and Development Authority for the right to lease its settlers’ land starting from 2012.
Significance: Under the LLA, the group has to pay a hefty amount of RM250 million per annum to the authority and 15 percent profit sharing out of its plantation profits. The source notes that the LLA factor has made the FGV business model to be entirely different from other major local plantation companies which.
MMC To Acquire 16% Stake In NCB
MMC Corporation has entered into an agreement to buy a 15.7 percent stake in port operator, NCB Holdings, from MISC for RM222 million, further expanding its ports and logistics businesses.
MMC notes that the acquisition is in line with its initiative to make strategic investment in core business, namely ports and logistics, to further strengthen the group’s financial position.
For the nine-month period ended 30 September, MMC’s top and bottom lines grew 15 percent and 56.5 percent to RM6.5 billion and RM293.8 million respectively. The group expects the acquisition to contribute positively to its future earnings.
Significance: MMC said the deal will bode well for the group, which is a key player in the port industry in Malaysia, saying that this is a good opportunity for the group to acquire a strategic stake in an established company in the ports and logistics sector.
http://www.sharesinv.com
BONIA, BONIA (9288), FGV, FGV (5222), MMCCORP, MMCCORP (2194)
Bonia 1Q15 Earnings Down On Operating Costs
For the first quarter ended 30 September, Bonia Corporation posted a marginal 1.5 percent rise in turnover to RM170.9 million, underpinned by better sales from the Braun Buffel brand and export sales to Vietnam and Indonesia.
However, net profit for the period shrunk 18.7 percent to RM12.9 million due to higher operating costs, which rose 3.5 percent more than the relative increase in revenue.
The group noted that it continues to see sales improvement in Vietnam and Indonesia, but recorded a negative growth in revenue for the Malaysian market due to weaker consumer sentiment as well as a decline in exports to Saudi Arabia.
Significance: The company anticipates more challenging times ahead, expecting softer consumer demand with slower growth in the Malaysian economy next year as well as a temporary impact from the implementation of The implementation of the goods and services tax. The group shared that it will continue to focus on expansion plans to overseas markets in particularly Indonesia and Cambodia.
FGV Hit By Land Lease, Posts 3Q14 Losses
For the third quarter ended 30 September, Felda Global Ventures Holdings (FGV) recorded its first net loss of RM9.3 million compared to earnings of RM22.9 million in 3Q13, despite a 34.3 percent jump in revenue to RM4.3 billion.
The group’s performance was dragged down by a negative RM98.9 million fair value change in land lease agreement (LLA) which impacted earnings from the plantation segment, as well as RM105.5 million of commodity realised and unrealised losses linked to forward and future contracts in its downstream operations.
A source has warned that FGV’s profits in the coming quarters were expected to be pulled down by the group’s 99-year LLA with the Federal Land and Development Authority for the right to lease its settlers’ land starting from 2012.
Significance: Under the LLA, the group has to pay a hefty amount of RM250 million per annum to the authority and 15 percent profit sharing out of its plantation profits. The source notes that the LLA factor has made the FGV business model to be entirely different from other major local plantation companies which.
MMC To Acquire 16% Stake In NCB
MMC Corporation has entered into an agreement to buy a 15.7 percent stake in port operator, NCB Holdings, from MISC for RM222 million, further expanding its ports and logistics businesses.
MMC notes that the acquisition is in line with its initiative to make strategic investment in core business, namely ports and logistics, to further strengthen the group’s financial position.
For the nine-month period ended 30 September, MMC’s top and bottom lines grew 15 percent and 56.5 percent to RM6.5 billion and RM293.8 million respectively. The group expects the acquisition to contribute positively to its future earnings.
Significance: MMC said the deal will bode well for the group, which is a key player in the port industry in Malaysia, saying that this is a good opportunity for the group to acquire a strategic stake in an established company in the ports and logistics sector.
http://www.sharesinv.com
