KUALA LUMPUR (July 20): Based on corporate announcements and news flow today, companies in focus tomorrow (July 21) may include: WZ Satu, UOA REIT, Barakah Offshore, Hua Yang, I-Bhd, PPB and Maxis.
WZ Satu Bhd has secured a RM32.7 million, 18-month mechanical erection subcontract package for the Refinery and Petrochemical Integrated Development (Rapid) project at Pengerang, Johor.
In a filing with Bursa Malaysia, WZ Satu said its wholly-owned subsidiary Misi Setia Oil & Gas Sdn Bhd received a letter of award from Petrofac E&C Sdn Bhd, to erect mechanical equipment (static and rotating equipment) for Package 4 of the Rapid project.
The group said the award is expected to contribute positively to the earnings and net assets per share of WZ Satu for the financial years ending Aug 31, 2017 (FY17) and FY18.
UOA Real Estate Investment Trust (REIT) said its total income available for distribution slipped 3.33% to RM11.58 million for the second quarter ended June 30, 2016 (2QFY16), from RM11.98 million a year ago.
The REIT will distribute RM11 million or 2.61 sen per unit for unitholders, down 8 sen or 2.97% compared with 2.69 sen per unit announced for 2QFY15.
Distribution per unit for the cumulative six months ended June 30, 2016 (1HFY16) was 5.22 sen, compared with 5.32 sen in 1HFY15, payable by the end of August.
The total distributable income for 1HFY16 is RM22.1 million compared to RM22.5 million in 1HFY15.
UOA REIT said gross rental for 1HFY16 decreased 0.3%, while total expenditure increased 2%, mainly due to higher property operating expenses, manager's fees and borrowing costs.
Barakah Offshore Petroleum Bhd said its wholly-owned subsidiary has been appointed by Petronas Chemicals Group Bhd (PetChem) as the panel contractor for construction works to be performed at PetChem's subsidiaries.
Barakah said PBJV Group Sdn Bhd won the two-year contract — which carries an option for a one-year extension — based on bidding.
Barakah said the total value of the contract will depend on the actual work orders to be issued by PetChem during the contract period.
However, it expects the contract to contribute positively towards Barakah's earnings and net assets per share for the duration of the contract.
Property developer Hua Yang Bhd, which saw its first quarter net profit fall 20%, has proposed to undertake a one-for-three bonus issue to reward its shareholders and increase its capital base to better reflect its current scale of operations.
The proposed bonus issue entails the issuance of 88 million bonus shares on an entitlement date to be determined and announced later.
Hua Yang said the exercise will improve the liquidity and marketability of Hua Yang shares.
The company said the exercise — to be completed in the second half of 2016 — shall be wholly capitalised from the company's reserves, which it deemed as adequate for the exercise.
Hua Yang also reported a 20% fall in net profit to RM23.91 million or 9.05 sen per share for 1QFY17 from RM29.89 million or 11.32 sen per share a year ago, due to lower sales achieved in the current quarter under review.
Revenue slid 10.2% to RM127.96 million in 1QFY17 from RM142.57 million in 1QFY16.
Hua Yang's total unbilled sales stood at RM410.07 million as at June 30, 2016. The company said the outlook for property industry continues to be challenging with tight liquidity and subdued consumer sentiments.
I-Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) soared by 72.32% from the previous comparable period to RM14.68 million, as the developer of i-City credited it to stronger property sales.
Its revenue rose by 64.39% to RM86.68 million from RM52.73 million.
In the financial period to date (1HFY16), I-Bhd made a net profit of RM30.04 million, up 60.17% year-on-year. Its earnings per share in the period was 2.83 sen, versus 1HFY15's 1.77 sen.
Revenue for 1HFY16 came to RM167.12 million, which was 30.49% higher than the previous corresponding period's RM128.07 million.
According to the explanatory notes accompanying its 2QFY16 financials, I-Bhd's strong double-digit growth in top and bottom lines were supported by its property development segment.
PPB Group Bhd has cautioned investors that its financial result for second quarter ended June 30, 2016 (2QFY16) will be adversely affected, after its 18.55%-associate, Singapore-listed Wilmar International Ltd, issued a profit warning yesterday.
According to Wilmar's filing with Singapore Stock Exchange yesterday, Wilmar is expected to report net losses of approximately US$230 million (RM929.6 million) in 2QFY16, as a result of challenging operating conditions in the quarter, after a preliminary review of the unaudited financial results of the company and its subsidiaries.
However, Wilmar had said the group is still expected to be profitable in 1HFY16, although profit is expected to be significantly lower than the corresponding 1HFY15.
Maxis Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) climbed 10.7% to RM488 million or 6.5 sen per share from RM441 million or 5.9 sen a share a year ago on increased adoption of 4G long term evolution (LTE).
Maxis said 4G LTE users stood at 3.5 million and were consuming an average of 3.7GB/month, representing an increase from 1.9 million and 2.2GB/month respectively, from a year ago.
Quarterly revenue, however, slipped 0.4% to RM2.102 billion from RM2.11 billion in 2QFY15, as both prepaid and postpaid service revenue declined by 5.3% and 1.7% to RM959 million and RM975 million respectively, on heightened price competition, which resulted in a lower subscription base.
Maxis announced an interim dividend of five sen per share, payable on Sept 29. This brings its year-to-date dividend to 10 sen per share.
For the six-month period ended June 30, 2016 (1HFY16), its net profit gained 18.2% to RM1 billion or 13.4 sen per share compared to RM851 million or 11.3 sen per share a year ago, while revenue fell 0.4% to RM4.24 billion from RM4.26 million in 1HFY15.
Year to date, Maxis' total subscribers — comprising 2.66 million postpaid subscribers and 8.108 million prepaid subscribers — fell by 10% to 11.015 million.