KUALA LUMPUR (July 29): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Aug 1) could include: CIMB, New Hoong Fatt, Caring Pharmacy, Nylex, WZ Satu, Censof and Luxchem.
CIMB Group Holdings Bhd's 97%-owned PT Bank CIMB Niaga Tbk saw its net profit grow 318.2% to 736.12 billion rupiah (about RM227 million) for the six-month period ended June 30, 2016 (1HFY16), from 176.3 billion rupiah a year ago.
CIMB Niaga said the increase is due to higher net interest income (NII) of 5.81 trillion rupiah and higher non-interest income of 1.46 trillion rupiah — up 4.8% and 24.1% respectively from the same period last year — as well as a 7.9% year-on-year (y-o-y) decline in provision expense.
CIMB Niaga president director Tigor M Siahaan said despite the challenging environment, its top line for 1HFY16 continued to improve.
Total gross loans were lower y-o-y at 175.34 trillion rupiah as at June 30, 2016, as it maintained a conservative growth strategy.
Meanwhile, the bank pointed out that despite slower overall growth in its loans, selected business segments such as its personal and multipurpose loan business, which grew 9.2% from last year, recorded encouraging performance.
The credit card segment also posted a 25.5% y-o-y growth to 7.18 trillion rupiah; and as at end-June 2016, it had issued over 2.1 million credit cards — up 13.4% from a year earlier.
"Current account, savings account (CASA) grew 5.7% to 93.21 trillion rupiah as at June 30, 2016 from a year ago, with the CASA ratio rising 457 basis points y-o-y to 51.99%.
"The loan to deposit ratio was higher at 96.54% at end-June 2016, compared to 95.81% in the same period last year," CIMB Niaga said.
In the meantime, it said the Indonesian government has appointed the bank as a perception bank assigned to accommodate funds repatriated by taxpayers who are participating in Indonesia's tax amnesty programme.
"With additional liquidity available through the programme, the national banking industry, CIMB Niaga included, will have greater capacity to disburse loans to various sectors," Tigor added.
New Hoong Fatt Holdings Bhd's net profit for the quarter ended June 30, 2016 (2QFY16) rose 66.9% to RM8.61 million, as revenue expanded by 16.1% to RM59.96 million, on higher demand and the impact of a favourable exchange rate.
For the cumulative six-month period (1HFY16), the automotive replacement parts manufacturer recorded a 48% jump in net profit to RM14.09 million as compared to RM9.52 million, again due to higher revenue and favourable foreign exchange (forex) rate impact.
Revenue grew 14.8% to RM114.6 million from RM99.86 million a year ago.
New Hoong Fatt remains cautiously optimistic on the overall outlook of the automotive replacement parts industry, amid challenging economic conditions. It will continue to focus on driving cost and operational efficiency programmes to enhance its competitiveness in the market, it said.
Caring Pharmacy Group Bhd's net profit for the fourth quarter ended June 30, 2016 (4QFY16) gained 4.2% to RM2.74 million against RM2.63 million a year ago, due to higher sales.
Revenue for the quarter was also up 13.5% to RM108.33 million, driven by higher sales generated from existing outlets, due to aggressive and extensive promotional campaigns launched.
The pharmacy chain operator proposed a final dividend of 1.5 sen per share, subject to shareholders' approval at its annual general meeting.
But for the full FY15, Caring's annual net profit was down 43.4% to RM7.29 million or 3.35 sen per share, weighed down by higher cost of sales, which rose to RM322.2 million from RM284.77 million in FY15.
Annual revenue was 10.6% higher at RM402.57 million, from RM364.11 million, due to higher sales coupled with the additional revenue generated from new outlets opened during the year.
Caring expects operating environment to remain challenging in view of slowing domestic economy and weak consumer purchasing power.
It is optimistic it would continue to contribute positively to its turnover and profit, by focusing on the quality of its products and services.
Nylex (Malaysia) Bhd's net profit nearly tripled to RM6.49 million for the fourth quarter ended May 31, 2016 (4QFY16), from RM2.24 million a year ago, on higher contributions from its subsidiaries abroad.
This was despite a 10.22% drop in revenue to RM291.02 million from RM324.13 million, a filing with Bursa Malaysia showed.
For the full year (FY16), Nylex's net profit increased 50.88% to RM11.15 million or 5.79 sen a share from RM7.39 million or 3.83 sen a share in FY15. Revenue fell 5.51% to RM1.2 billion from RM1.27 billion.
For FY16, Nylex said the decline in revenue was due to lower contribution from its industrial chemical and polymer divisions.
On prospects, Nylex said the outlook for its operating environment for FY17 would be weighed down by the volatile economic conditions.
"The board will continue to seek ways to safeguard the group's profitability," it said.
WZ Satu Bhd's unit has clinched a RM27.03 million contract from Shell MDS (Malaysia) Sdn Bhd (SMDS) for mechanical works at a SMDS pipeline project.
In a bourse filing, WZ Satu said its wholly-owned subsidiary Misi Setia Oil & Gas Sdn Bhd (MSOG) was awarded the contract for a 13-month period. It expects to commence work on Aug 1.
The company said the contract is expected to contribute positively to the future earnings and net assets per share of the group for the financial year ending Aug 31, 2017 (FY17).
Censof Holdings Bhd has clarified that an owed sum of RM6.7 million that was the subject of a qualified opinion expressed by its external auditors is recoverable.
"The qualified opinion reflects the difference of opinion between the board of directors of Censof and the external auditors, Messrs Crowe Horwath," it said in a statement today.
The contract was first awarded to Censof's subsidiary in 2011 for RM22.5 million, and there was a variation order worth RM2.5 million thereafter.
"Accordingly, the project was implementing under various phases over the years. So far, Censof's subsidiary has to date received payment for work done amounting to RM18 million thus far.
"For the remaining portion of the contract, Censof is currently undergoing a User Acceptance Test (UAT) stage [which] is expected to be completed within the coming six months," said Censof.
Crowe Horwath had expressed a qualified opinion on the financial solutions and software provider's accounts for the financial year ended March 31, 2016 (FY16) pertaining to the RM6.7 million long owed by a government agency client.
Luxchem Corp Bhd's net profit rose 32.82% to RM13.03 million for the second quarter ended June 30, 2016 (2QFY16), on higher contribution from its trading and manufacturing segments.
Revenue climbed 9.2% to RM175.85 million from RM161.03 million in 2QFY15, the company said in a bourse filing.
For the first half of the financial year ended Dec 31, 2016 (1HFY16), net profit increased by 76.32% to RM20.03 million from RM11.36 million in 1HFY15. Revenue inched up 0.67% to RM335.82 million from RM333.57 million.
The company also reported realised and unrealised forex gains of RM1.44 million and RM1.22 million respectively, compared to realised and unrealised losses of RM66,000 and RM575,000 respectively in 2QFY15.
Luxchem said fluctuations in exchange rates and raw material prices will continue to be a challenge for the group.
However, the company's directors remain positive on the group's prospects.