HLFG, FGV, Brahim's, Sunway, CIMB Group, UMW Holdings, MyEG Services, Barakah, Melati Ehsan & IOI Properties

KUALA LUMPUR (Aug 29): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, Aug 30) could include: AirAsia Bhd, Hong Leong Financial Group Bhd (HLFG), Felda Global Ventures Holdings Bhd (FGV), Brahim’s Holdings Bhd, Sunway Bhd, CIMB Group Holdings Bhd, UMW Holdings Bhd, MyEG Services Bhd, Barakah Offshore Petroleum Bhd, Melati Ehsan Holdings Bhd and IOI Properties Group Bhd.

AirAsia Bhd’s net profit for the second quarter ended June 30, 2016 (2QFY16) jumped 40.77% to RM342.12 million, from RM243.03 million a year earlier, thanks to lower fuel prices and higher revenue.

For 2QFY16, AirAsia reported a revenue of RM1.62 billion, equivalent to a year-on-year growth of 22.55%, from RM1.32 billion previously.

Meanwhile, its board of directors has approved the divestment of Asia Aviation Capital Ltd (AAC), the low cost carrier’s wholly-owned aircraft leasing business.

AirAsia said the board has agreed to “carry out a sale process for the purpose of divesting all or a substantial portion of its equity interest in AAC, or its business or assets.”

The airline has appointed RHB Investment Bank, Credit Suisse (Singapore) Ltd and BNP Paribas (acting through its Singapore branch) and BNP Paribas Capital (M) Sdn Bhd, as joint advisers for the potential divestment.

RHB has also been appointed as the sole principal adviser for the implementation of the proposal, arising from the potential divestment.

Hong Leong Financial Group Bhd (HLFG) posted a 10.8% drop in net profit at RM393.5 million or 34.4 sen per share in its fourth quarter ended June 30, 2016 (4QFY16), from RM441.3 million or 42 sen per share a year ago.

HLFG said its pre-tax profit came in slightly higher at RM788.8 million in 4QFY16, compared with RM780.5 million in 4QFY15, an increase of 1.1%, mainly due to higher contribution from its banking division.

HLFG's quarterly revenue fell 1.02% to RM1.21 billion, from RM1.22 billion in 4QFY16.

Felda Global Ventures Holdings Bhd (FGV)'s second quarter net profit rose 35% to RM62.21 million, from a year earlier, mainly on lower minority interest.

The oil palm plantation group said its RM62.21 million net profit in the second quarter ended June 30, 2016 (2QFY16) rose from RM46.09 million. Revenue fell to RM4.14 billion, from RM4.19 billion.

According to the group's income statement, minority interest dropped to RM2.44 million, from RM56.86 million. Profit before zakat and tax fell to RM108.16 million, from RM190.55 million.

Brahim’s Holdings Bhd reported its fifth straight quarterly loss today. However, the RM5.80 million (2.45 sen per share) net loss for the second quarter ended June 30, 2016 (2QFY16) was smaller than the RM6.81 million posted for 2QFY15.

Revenue fell 8.36% to RM61.47 million, from RM67.08 million in 2QFY15.

“The performance of in-flight catering and related services continued to show a decline quarter-on-quarter, and also when compared to the corresponding quarter in the previous year,” it said.

Sunway Bhd posted a net profit of RM154.36 million or 7.82 sen per share for the second quarter ended June 30, 2016 (2QFY16).

Due to lower fair value gains from the annual revaluation exercise done by its associate, Sunway Real Estate Investment Trust (SunREIT), the group’s quarterly profit was down 35%, compared with RM237.91 million or 13.54 sen per share a year ago.   

Sunway holds a 37.3% stake in SunREIT.

However, the group noted save for the fair value gains which were lower by approximately RM87.1 million, its overall operational performance was better than the corresponding quarter of the previous financial year.

Quarterly revenue improved 11.5% year-on-year (y-o-y) to RM1.16 billion, from RM1.04 billion, contributed by its trading and manufacturing segment.

Sunway has proposed a five sen dividend per share for the quarter, which will be paid on a date to be determined.

CIMB Group Holdings Bhd announced a 36.4% increase in net profit to RM872.83 million or 10.07 sen per share for its second financial quarter ended June 30, 2016 (2QFY16), from RM639.75 million or 7.54 sen per share a year ago.

The improved earnings were mainly due to pickup in consumer banking, driven by regional loan growth, coupled with lower overhead costs and provisions.

CIMB said its operating income went up 1.8% in 2QFY16 to RM3.9 billion, which consists of net interest income, income from Islamic banking operations and net non-interest income, from RM3.83 billion in 2QFY15.

The group declared an interim dividend of eight sen per share, which will be paid through cash or an optional dividend reinvestment scheme.

UMW Holdings Bhd plunged into the red with a net loss of RM12.13 million in the second quarter ending June 30, 2016 (2QFY16), from a net profit of RM68.44 million a year ago, mainly due to lower revenue and higher finance cost.

Revenue fell 18.34% to RM2.85 billion, from RM3.49 billion, as all business segments recorded lower revenue.

For the first half ended June 30, 2016 (1HFY16), UMW’s net profit dipped 98.09% to RM4.45 million, from RM233.59 million in 1HFY15, on lower profit from the automotive, oil and gas, and equipment segments.

Revenue declined 24.96% to RM5.05 billion, from RM6.73 billion.

MyEG Services Bhd’s net profit for the final quarter ended June 30, 2016 (4QFY16) swelled 122.4% to RM51.04 or 2.1 sen per share, from RM22.9 million or one sen per share a year ago.

Revenue surged 93.6% to RM87.26 million, from RM45.06 million, the electronics service provider said in a bourse filing today.

It said higher revenue and profit was due to higher transaction volumes from the online renewal of foreign workers’ permits and insurance (FWP) and foreign worker rehiring programme services, as well as contribution from its newly-acquired subsidiary, Cardbiz Holding Sdn Bhd.

However, it added that the increases were offset by higher personnel related expenses and operating expenses, to support the growth in FWP and the foreign worker rehiring programme services, as well as higher interest cost from its term loan to finance its newly-acquired building.

MyEG proposed a final dividend of 1.3 sen, based on an enlarged share capital of 2.4 billion shares, arising from the completion of the bonus issue in January.

Barakah Offshore Petroleum Bhd continued its contract-winning streak, bagging a RM39 million job at Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

Barakah said a consortium, comprising its unit PBJV Group Sdn Bhd, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) and HQC Engineering Malaysia Sdn Bhd, was awarded the job by Petronas' subsidiary, PRPC Utilities and Facilities Sdn Bhd.

Melati Ehsan Holdings Bhd has clinched a Central Spine Road, Package 3 project worth RM99 million from Public Work Department (JKR).

In a filing with Bursa Malaysia today, the group said its unit Pembinaan Kery Sdn Bhd had accepted a letter of award from JKR in relation to the job.

According to Melati Ehsan, the contract was for the stretch from Gua Musang, Kelantan, to Kampung Relong, Pahang.

IOI Properties Group Bhd has successfully tendered for a 6.2-acre parcel of leasehold land in Xiang An central business district in Xiamen, China, for RMB2.324 billion (approximately RM1.4 billion), of which 91% will be allocated for residential development, and the rest (9%) for commercial development and a community service centre.

In a filing with Bursa Malaysia today, IOI Properties said the land was acquired via its indirect 99.8%-owned subsidiary IOI (Xiamen) Properties Co Ltd, through a competitive bidding conducted by the Xiamen Bureau of Land Resources and Real Estate Management.