KUALA LUMPUR (Nov 28): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (Nov 29) could include: Karex, Barakah, Manulife, Tan Chong Motors, UMWOG, TH Plantations, AWC, Scomi Group, MCT, Multi-Usage and TRC Synergy.
Karex Bhd, the world's biggest condom maker, expects revenue contribution from the Europe market to double in its financial year ending June 30, 2017 (FY17), thanks to its newly-acquired UK subsidiary, Pasante Healthcare Ltd.
Its chief executive officer Goh Miah Kiat said the slowdown in Europe will also help boost Karex's sales, as consumers there are more likely to opt for affordable products.
"With Brexit and the financial crisis in the European region, more people will lose their jobs and consumption will skew towards more affordable products — that is an opportunity for players like us to tap into the market there, because in the past, [the] European market was predominantly occupied by major brands," said Goh.
In FY16, the Europe market contributed 10% of Karex's total revenue, said Goh, adding that this figure could "easily" double in FY17.
Barakah Offshore Petroleum Bhd registered a net profit of RM1.97 million compared with a net loss of RM15.44 million a year ago, as a result of the cost reduction exercise that was implemented since the beginning of the current financial year ending Dec 31, 2016 (FY16).
Revenue rose 50.8% to RM167.19 million in 3QFY16 from RM110.89 million in 3QFY15, mainly due to higher revenue generated from its transportation and installation activities.
Higher certification of work done for the transportation and installation works caused the group's revenue to rise by 177.35% from the previous year's corresponding period.
The group said market conditions for the industry will be difficult in the immediate future because of continued decreased oil prices.
Manulife Holdings Bhd's net profit fell by 20.8% to RM12.64 million in its third quarter ended Sept 30, 2016, from RM15.96 million in the previous corresponding quarter, despite an uptick in revenue to RM266.27 million from RM191.3 million in the previous year, the group said.
The insurance and wealth management provider's asset management services segment reported a marginal improvement of 4% in its operating revenue from RM15 million to RM15.6 million.
For the nine months ended Sept 30, 2016, it posted a net profit of RM18.34 million, down 35% from RM28.35 million. Revenue rose 35% to RM810.07 million from RM600.7 million.
Going forward, Manulife projected challenges to its earnings from a low interest environment, worsening claims experience, high medical costs and channel distribution expansion costs.
Tan Chong Motor Holdings Bhd posted a third consecutive quarterly net loss of RM4.5 million in the third quarter ended Sept 30, 2016 (3QFY16) compared with a net profit of RM29.18 million a year ago, mainly impacted by foreign exchange rates and the weaker ringgit.
Revenue for the quarter grew 2.19% to RM1.4 billion from RM1.37 billion.
For the nine months (9MFY16), Tan Chong's recorded a net loss of RM56.3 million compared with RM69.69 million net profit in 9MFY15 while revenue rose 0.71% to RM4.24 billion from RM4.21 billion.
In the immediate term, the group said it will continue to improve and enhance the sales and marketing activities to sustain the sales in a competitive environment.
UMW Oil & Gas Corp Bhd (UMWOG) saw its fourth consecutive quarter in the red with a net loss of RM135.43 million for the third quarter ended Sept 30, 2016 (3QFY16) versus its net profit of RM218,000 in the same quarter a year earlier (3QFY15).
Revenue was 77% lower at RM49.65 million from RM212.7 million in the previous year, which, according to the group, is due to the idling of most of its assets under the drilling services segment, which accounts for 93% of its total revenue.
For the nine months to Sept 30, its net loss stood at RM267.76 million compared to its net profit of RM36.82 million a year earlier, while revenue fell 62% to RM267.34 million from RM708.57 million.
Going forward, UMWOG said a recovery in the O&G industry is mostly dependent on the impending decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut oil production.
TH Plantations Bhd's third quarter net profit jumped 210% to RM19.18 million from RM6.19 million a year earlier, on higher average prices for oil palm fresh fruit bunch, palm kernel and crude palm oil.
In a statement, TH Plantations said revenue was higher at RM170.31 million in the third quarter ended Sept 30, 2016 (3QFY16) from RM133.49 million a year ago (3QFY15).
Cumulative 9MFY16 net profit rose to RM19.61 million from RM17.92 million a year earlier. Revenue meanwhile was higher at RM392.23 million versus RM325.98 million in 9MFY15.
Looking ahead, TH Plantations said it was "cautiously optimistic" of its 4QFY16 financials, on high commodity prices and weaker ringgit.
AWC Bhd's net profit increased more than four times to RM5.44 million or 2.1 sen a share in its first quarter ended Sept 30, 2016 (1QFY17) from RM1.25 million or 0.56 sen a share a year ago due to higher revenue contributions.
It said in a filing to Bursa Malaysia that its revenue grew 77.52% to RM67.12 million in 1QFY17 from RM31.81 million a year ago.
The group's improved earnings was due to strong contributions from the group's facilities, environment and engineering divisions.
It announced a final single-tier dividend of one sen per share in respect of the financial year ended June 30, 2016, which was approved in a recent annual general meeting. The dividend will be paid to shareholders on Jan 10, 2017.
Scomi Group Bhd registers a second consecutive quarter in the red with a net loss of RM21.2 million, as revenue almost halved on a year-on-year (y-o-y) basis due to lower contributions from its oilfield services, transportation solutions and marine services segments.
Revenue for the second quarter ended Sept 30, 2016 (2QFY17) fell to RM176.05 million from RM337.76 million a year ago, when it achieved a net profit of RM5 million, its bourse filing today showed.
Oilfield services was the biggest drag on its quarterly results, with a segment loss of RM7 million as compared to a segment profit of RM21.8 million a year ago, as revenue fell 56% to RM110.4 million from RM250.9 million, on lower drilling activities in several countries as its customers grew cautious in their drilling plans.
For its cumulative first half (1HFY17), it posted a net loss of RM33.4 million compared to a net profit of RM14.7 million in the 1HFY16, as revenue declined 42% to RM413.6 million from RM717.7 million.
MCT Bhd's net profit increased 3.84% to RM16.06 million or 1.2 sen a share in its first quarter ended Sept 30, 2016 (1QFY17) from RM15.46 million or 1.16 sen a share a year ago.
The slight rise in net profit was achieved despite a drop in pre-tax profit due to a lower effective tax rate during 1QFY17, the group said in a Bursa filing.
Revenue was down 16.27% to RM155.27 million from RM185.45 million.
Moving forward, the group said the property market is expected to remain challenging during the year due to the tepid economic outlook and the weak consumer sentiments.
Multi-Usage Holdings Bhd has suspended two of its directors, namely Gerald Mak Mun Keong and Tan Chew Hua, for a period of two months.
In a bourse filing, the group said it is suspending Mak to investigate his independence, while Tan is suspended for the investigation into the matters highlighted in the qualified auditors' report and the special audit report.
"The board authorised the nomination committee to lead the investigation into the above matters," it said.
TRC Synergy Bhd said it has received a notice of termination from MMC Gamuda KVMRT (PDP SSP) Sdn Bhd for works related to the new Sg Buloh-Serdang-Putrajaya Mass Rapid Transit Line (MRT Line 2).
The RM74.39 million contract included works to relocate a craft museum, Karyaneka office and the National Heritage Department office to Bangunan Sultan Abdul Samad as part of the MRT Line 2 project.
"Further to the termination letter, TRC had initiated the negotiation and discussion with the owner's project delivery partner on the consequences of the termination and to ascertain the final quantum of compensation payable to TRC pursuant to the contract documents. The negotiation is still ongoing," said TRC in a Bursa filing.
It said the termination is not expected to materially impact its earnings, net asset and gearing for the financial year ending Dec 31, 2016.
In a separate filing, TRC announced a 78% y-o-y jump in its net profit to RM15.15 million or 3.15 sen per share for the third quarter ended Sept 30, 2016 from RM8.51 million or 1.77 sen per share, boosted by higher margins. Revenue for the quarter, however, fell 20% to RM165.1 million from RM206.43 million a year earlier.
For the cumulative nine-month period (9MFY16), net profit was down 3% at RM20.7 million from RM21.46 million a year ago, while revenue declined 0.8% to RM547.53 million from RM552.1 million.