AZRB, Selangor Dredging, Bumi Armada, Scomi Engineering, Daya Materials, BIMB, Pos Malaysia and Datasonic

KUALA LUMPUR (Aug 25): Based on corporate announcements and news flow today, companies that may be in focus next Monday (Aug 29) could include: Ahmad Zaki Resources Bhd (AZRB), Selangor Dredging Bhd (SDB), Bumi Armada Bhd, Scomi Engineering Bhd, Daya Materials Bhd and BIMB Holdings Bhd, Pos Malaysia Bhd and Datasonic Group Bhd.

Ahmad Zaki Resources Bhd (AZRB)'s net profit fell 36% to RM6.21 million in the second quarter ended June 30, 2016 (2QFY16), from RM9.63 million or a year earlier, despite a 70% improvement in quarterly revenue to RM264.05 million, from RM155.57 million.

The lower profit for the quarter was due to the high-base effect, as the group recorded higher operating income in 2QFY15, while the better top-line was due to higher progress for certain projects under its construction business, as well as new awards during the quarter.

The group declared a single-tier interim dividend of two sen per share FY16.

For the six months ended June 30, 2016 (1HFY16), net profit retreated 20% to RM10.41 million, compared with the previous year's RM13.01 million, though revenue gained 86% to RM573.42 million, from RM308.62 million.

"The group's construction division's remaining order book balance as at the end of 2QFY16 stands at RM4.36 billion," said AZRB.

Selangor Dredging Bhd (SDB)’s net profit plunged 79% to RM4.6 million in the first quarter ended June 30, 2016 (1QFY17), from RM21.49 million in 1QFY16, primarily because the previous year had recorded a gain of RM13.69 million from land disposal.

Revenue for the quarter slipped 4% to RM61.35 million, from RM64.11 million, which it attributed to to completion of the group’s Windows on the Park project in Bandar Tun Hussein Onn here.

Going forward, the group expects the remainder of its financial year to be challenging, considering the generally softer economic sentiment, weaker ringgit and tighter lending policies by financial institutions.

The group said it has approximately RM351 million in unbilled sales.

Bumi Armada Bhd announced a net loss of RM518.32 million in the second quarter ended June 30, 2016 (2QFY16) — the worst ever quarterly loss so far, since the group was listed on Bursa Malaysia in July 2011.

The group’s earnings was dragged down by massive non-cash impairment charges of RM575.5 million, a significant portion of which relates to the Armada Claire floating production, storage and offloading (FPSO) vessel.

In comparison, the group achieved a net loss of RM291.53 million in the previous corresponding quarter.

Its quarterly revenue was down 12.2% to RM402.87 million, from RM459.08 million a year earlier, due to a 28% fall in contribution from FPSO and floating gas solution (FGS), on the back of a loss of revenue from Armada Claire during the quarter, lower conversion activities as new projects near completion prior to sail away, and lower contribution from Armada Perkasa.

For the cumulative six months ended June 30(1HFY16), it sank deeper into red with RM494.89 million, versus RM219.48 million in 1HFY15, while cumulative revenue declined 19.2% to RM833.64 million, from RM1.03 billion.

Scomi Engineering Bhd said a winding-up petition served on its major subsidiary, Scomi Rail Bhd, over a RM1 million claim, has been struck out.

In a filing to Bursa Malaysia, it said Scomi Rail succeeded in striking out the petition dated July 4, served by PSI Incontrol Sdn Bhd at the High Court today.

The petition was over a disputed sum of about RM1 million, allegedly owed to PSI in respect of supply contracts entered between Scomi Rail and PSI in September 2012.

Daya Materials Bhd recorded a net loss of RM18.1 million in the second quarter ended June 30, 2016 (2QFY16), marking its third consecutive quarterly loss. This was mainly because of lower vessel utilisation rate. It posted a net profit of RM8.77 million in 2QFY15.

Quarterly revenue tumbled 50% to RM96.21 million, from RM193.18 million a year earlier.

Segmentally, the group's polymer and oil and gas (O&G) divisions had both reported losses of RM376,000 and RM15.64 million, respectively.

For the first half of its financial year (1HFY16), the group reported a net loss of RM47.31 million, versus a net profit of RM8.51 million in the previous year, while revenue fell to RM282.77 million, from RM395.95 million.

The group expects lower vessel utilisation and charter rates for its O&G segment, while its polymer segment is expected to remain subdued, due to slow growth in the industry and competition from foreign players.

BIMB Holdings Bhd's second quarter net profit rose 10.6% to RM143.71 million, from RM129.89 million a year earlier, on better earnings from its Islamic banking and takaful business.

The group said its net income for the quarter ended June 30, 2016 (2QFY16) gained 12.9% to RM595 million, from RM526.99 million, while finance cost jumped 34.4% to RM28.17 million, from RM20.96 million; revenue was up 9.6% to RM893.21 million, from RM814.71 million.

For the cumulative six-month period (1HFY16), BIMB reported a 5% jump in net profit to RM278.97 million or 17.62 sen per share, from RM265.59 million or 17.26 sen per share in 1HFY15.

Net income grew 10.4% to RM1.17 billion, from RM1.05 billion, while finance cost jumped 46.2% to RM56.45 million, from RM38.61 million. 1HFY16 revenue rose to RM1.79 billion, from RM1.62 billion a year ago.

As at June 30, Bank Islam's customer deposits and investment accounts stood at RM42.4 billion, with a year-on-year decrease of RM900 million or 2.2%, in view of stiff competition for deposits among financial institutions in Malaysia.

The low cost current and savings accounts (CASA) reported a year-on-year decrease of RM200 billion or 1.5%. Nevertheless, the CASA ratio as at June 30 was 36.9% against the Islamic Banking Industry CASA ratio of 25% as at May 31.

The bank's gross impaired financing ratio improved to 1.05%, while the net impaired financing ratio was negative 0.85% as at June 30, compared to 1.09% and negative 0.83% respectively as at Dec 31, 2015.

Pos Malaysia Bhd’s net profit for the first quarter ended June 30, 2016 (1QFY17) jumped 40% to RM31.84 million, from RM22.74 million a year earlier, driven by income from its courier segment, boosted by e-commerce and online businesses.

Quarterly revenue was up 6.5% to RM415.87 million, from RM390.37 million previously, also driven by its courier segment.

Pos Malaysia group chief executive officer Datuk Mohd Shukrie Mohd Salleh said the group remained resilient, amidst challenging current operating environment.

"We are focusing to transform into a one-stop fully-integrated logistics services provider, through recently-approved and soon-to-be-completed corporate exercise of acquiring Kuala Lumpur Airport Services Sdn Bhd (KLAS) Group of Companies," he added.

Going forward, Pos Malaysia said its longer term prospects remain closely tied to growth in the fulfilment and delivery of merchandise, arising from growth in e-commerce.

Datasonic Group Bhd's net profit in the first quarter ended June 30, 2016 (1QFY17) shot up 68% year-on-year to RM20.79 million, from RM12.36 million a year ago, while revenue grew almost 40% to RM76.08 million, from RM54.36 million.

The company's operating margin expanded to 32.8% during the quarter under review, compared with 28.66% previously.

Datasonic said some RM60 million of its quarterly revenue is derived from the supply of smart cards, datapages, consumables, components for smart cards and personalisation solutions.

It declared a first interim dividend of one sen per share, payable on Sept 28.