KUALA LUMPUR (May 24): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, May 25) could include the following: UMW, Petron, Genting, Kossan, AAX, Ajinomoto, IGB, HLFG, FGV and Ann Joo.
The continued low oil prices, weak ringgit and soft market sentiment continued to take a heavy toll on UMW Holdings Bhd's earnings. Its net profit slumped 90% to RM16.58 million in the first quarter ended March 31, 2016 (1QFY16) from RM165.15 million a year ago.
The group's revenue declined 32% to RM2.2 billion from RM3.24 billion in 1QFY15.
UMW told Bursa Malaysia that it expects a challenging year ahead. Its management, in the meantime, will continue to implement cost cutting measures to mitigate the impact of market volatility on the group's performance.
Petron Malaysia Refining & Marketing Bhd's net profit for first quarter ended March 31, 2016 (1QFY16) also plunged 70.7% to RM16.6 million from RM56.8 million last year, on contraction in margins and sale of higher cost inventory at lower prices.
Petron told Bursa Malaysia its revenue also dropped almost 10% to RM1.65 billion in 1QFY16 from RM1.8 billion last year.
Genting Bhd's net profit in its first quarter ended March 31, 2016 (1QFY16) tumbled 78.9% to RM130.83 million from RM620.06 million a year ago, largely due to a 38% slump in its earnings before interest, taxes, depreciation and amortisation (EBITDA).
Besides that, the previous year's quarter also saw the inclusion of a disposal gain from available-for-sale financial assets (RM217.8 million) and the reversal of previously recognised impairment losses.
Its adjusted EBITDA fell to RM1.1 billion from RM1.79 billion a year ago. Quarterly revenue, however, rose 7.6% to RM4.7 billion from RM4.37 billion a year ago, as contributions improved from Resorts World Sentosa, its casino business in the UK, its leisure and hospitality business in the US and the Bahamas, as well as its power division.
These were offset by lower plantation business revenue due to lower fresh fruit bunches production, lower property division revenue due to lower land sales, and lower oil and gas division revenue due to lower average oil prices.
On the flip side, Kossan Rubber Industries Bhd's net profit increased by 12.89% to RM51.31 million in the first quarter ended March 31, 2016 (1QFY16) from RM45.45 million a year ago, as revenue across all its divisions improved.
The group revenue was up 11.65% to RM412.28 million in 1QFY16 from RM369.26 million in 1QFY15, its bourse filing showed, as all three divisions — glove, technical rubber and cleanroom — continued to register good growth in revenue ranging from 10% to 32.62% in 1QFY16.
AirAsia X Bhd (AAX) reported a second consecutive profitable quarter, with a net profit of RM179.49 million for the first quarter ended March 31, 2016 (1QFY16) compared with a net loss of RM125.92 million a year ago.
In a statement today, AAX said its revenue rose 25.2% to RM970.67 million in 1QFY16 from RM775.37 million in 1QFY15.
The group posted an operating profit of RM105 million in 1QFY16, which, coupled with a foreign exchange gain of RM122 million, resulted in the net profit. Other contributors to the encouraging results include the progress of the turnaround plan initiated in 2015, and strong return of business from China and Australia markets in 1QFY16.
Ajinomoto (Malaysia) Bhd's net profit rose 15.95% to RM6.59 million for the fourth quarter ended March 31, 2016 (4QFY16) from RM5.69 million a year ago, underpinned by higher domestic sales in Umami and Food & Seasoning segments and better margins from export sales arising from the appreciation in the US dollar.
The group told Bursa its revenue for 4QFY16 surged 35.99% to RM110.24 million from RM81.06 million in the previous year.
The group's full-year (FY16) net profit also jumped 37.18% to RM40.79 million from RM29.73 million in FY15, underpinned by its full-year revenue, which increased by 17.58% to RM400.2 million from RM340.38 million.
IGB Corp Bhd, meanwhile, posted a net profit of RM51.81 million in the first quarter ended March 31, 2016 (1QFY16), down 20.5% from RM65.15 million a year earlier, on lower contribution from property development and property investment segments.
Revenue fell 16.2% to RM280.21 million from RM334.28 million, on lower contribution from the group's property development division.
Hong Leong Financial Group Bhd reported a 13% drop in its third quarter net profit from a year earlier as net interest and non-interest income declined, coupled with higher expenses and bad loan allowance.
The group told the bourse that its net profit fell to RM315.07 million in the third quarter ended March 31, 2016 (3QFY16) from RM363.5 million. Revenue declined to RM1.03 billion from RM1.05 billion.
"The decrease was mainly due to lower contribution across all operating divisions," Hong Leong Financial said.
Felda Global Ventures Holdings Bhd slipped into the red in its first quarter ended March 31, 2016 (1QFY16) with a net loss of RM65.54 million compared to a net profit of RM3.58 million a year ago, primarily on lower crude palm oil (CPO) production in its palm upstream segment.
Its quarterly revenue, however, was up 38.6% year-on-year (y-o-y) to RM3.76 billion from RM2.71 billion.
The palm oil producer said its palm upstream segment saw its loss widen substantially to RM100.55 million in 1QFY16 from a loss of RM1.57 million, on the back of weaker CPO production which was adversely affected by the severe dry condition from the El Nino phenomenon.
The group's palm downstream segment, on the other hand, saw a profit of RM1.8 million in 1QFY16 compared to a loss of RM21.69 million in 1QFY15, due to higher sales volume in the United States fatty acid business, and higher margin achieved for refined, bleached and deodorised palm kernel oil and crude palm kernel oil from kernel crushing activities.
Ann Joo Resources Bhd has proposed a renounceable rights issue of up to 125.14 million new redeemable convertible cumulative preference shares (RCPS) on the basis of one RCPS for every four existing ordinary shares held, to raise up to RM62.57 million for working capital.
The steel maker has also proposed the establishment of a long-term incentive plan of up to 15% of the issued and paid-up ordinary share capital of Ann Joo for the selected key personnel or senior management, and a dividend reinvestment plan.
Separately, it announced that its net profit grew 3.66% to RM5.52 million for the first quarter ended March 31, 2016 (1QFY16) from RM5.32 million in 1QFY15, amid favourable foreign exchange rate and improved cost structure.
Its quarterly revenue for 1QFY16, however, fell almost 6% to RM489.53 million from RM520.65 million in the previous year.
Companies in the news - UMW, Petron, Genting, Kossan, AAX, Ajinomoto, IGB, HLFG, FGV and Ann Joo
UMW, PETRONM, GENTING, KOSSAN, AAX, AJI, IGB, HLFG, FGV, ANNJOO,
http://www.theedgemarkets.com/en/node/281527
