PetChem, Westports, KKB Engineering, Scan Associates, Scientex, Orion, Daibochi, Sapura Industrial, Shangri-La, DutaLand, TH Heavy and Barakah

KUALA LUMPUR (Nov 10): Based on corporate announcements and news flow today, companies in focus on tomorrow (Friday, Nov 11) may include: Petronas Chemicals Group Bhd, Westports Holdings Bhd, KKB Engineering Bhd, Scan Associates Bhd, Scientex Bhd, Orion IXL Bhd, Daibochi Plastic and Packaging Industry Bhd, Sapura Industrial Bhd, Shangri-La Bhd, DutaLand Bhd, TH Heavy Engineering Bhd and Barakah Offshore Petroleum Bhd

Petronas Chemicals Group Bhd (PetChem) has awarded a US$328 million engineering, procurement, construction and commissioning (EPCC) contract to a consortium led by Italian firm Tecnimont S.p.A for a package of the refinery and petrochemical integrated development (Rapid) project in Pengerang, Johor, relating to the realisation of a polypropylene unit.

The consortium comprises Tecnimont, Beijing-based China Huanqiu Contracting & Engineering Co Ltd, Tecnimonthqc Sdn Bhd and Tecnimonthqc S. c. a r. l. of Italy.

PetChem said its wholly-owned subsidiary PRPC Polymers Sdn Bhd awarded the EPCC contract for Package 27 within the Rapid project to the consortium based on competitive bidding.

The polypropylene unit will have a capacity of 400,000 tonnes per year.

Westports Holdings Bhd’s net profit for the third quarter ended Sept 30, 2016 rose to RM151.03 million from RM130.04 million a year earlier, due mainly to a 9% increase in container throughput from 2.29 million to 2.49 million twenty-foot equivalent units (TEUs).

In a filing with the stock exchange, the port operator said revenue for the quarter increased to RM474.41 million, from RM400.78 million a year earlier.

Earnings per share was 4.43 sen, versus 3.81 sen a year earlier.

For the nine months ended Sept 30, Westports posted a net profit of RM481.98 million versus RM372.32 million a year earlier, while its revenue rose to RM1.46 billion, from RM1.2 billion.

Reviewing its performance, Westports said container throughput had increased by 10% from 6.71 million to 7.39 million TEUs for the nine-month period under review.

KKB Engineering Bhd narrowed its net loss to RM135,000 or 0.05 sen loss per share in the third quarter ended Sept 30, 2016 (3QFY16) from RM3.36 million or 1.3 sen loss per share a year ago, on increased sales along with improved gross profit margin registered by the group’s steel pipes manufacturing business.

Revenue more than tripled to RM27.65 million in 3QFY16 from RM8.28 million in 3QFY15, mainly due to higher revenue registered by both the engineering and manufacturing sectors.

For the cumulative nine months (9MFY16), KKB Engineering posted a net loss of RM1.72 million compared with a net profit of RM29.98 million in 9MFY15,

Revenue fell 33.1% to RM76.99 million in 9MFY16 from RM115.13 million in 9MFY15.

Scan Associates Bhd, which was previously embroiled in a boardroom tussle, has received a writ of summons and statement of claim from AmMetLife Insurance Bhd, claiming the Practice Note 17 company had failed to settle an outstanding payment of RM97,475 for the insurance premium coverage provided by the insurer.

In a bourse filing, the ICT security solutions provider said AmMetLife is also seeking to claim the 5% interest per year on the outstanding sum calculated from Jan 20, 2016 until the date of full settlement, as well as costs and any other relief deemed fit and proper.

Scan added that the writ is not expected to have material, financial and operational impact on the group. Save and except for the outstanding payment sum due and the legal costs in defending against the plaintiff’s writ, the company is not expected to incur any further losses arising from the writ.

It said it is seeking legal advice to resolve and/or defend against this matter.

Scientex Bhd is investing US$25 million (RM106.65 million) to set up a new stretch film manufacturing plant in Arizona, the United States, to enable it to expand worldwide.

To embark on this vision, the packaging manufacturer and property developer has established a new subsidiary called Scientex Phoenix LLC along with manufacturing facilities to produce quality stretch film, to serve the immediate market within the US, which is in line with its long-term expansion plans to continuously expand its geographical reach worldwide.

In a bourse filing, Scientex said with closer proximity, it would be better able to serve its customers. It will also provide a suitable platform to seek opportunities to penetrate into new markets (like) the combined markets in the North, Central and South Americas (which) offer vast and relativeLY untapped market potential.

Orion IXL Bhd has terminated its agreement with PPYC Logistic (M) Sdn Bhd, a company related to Orion, for an RM8 million contract as both parties were unable to agree on the detailed specifications of the system to be developed.

In a bourse filing, Orion (formerly known as CWorks Systems Bhd) said the agreement inked on Feb 5 was for the supply and maintenance of a computerised logistic and stock management control system worth RM8 million.

Daibochi Plastic and Packaging Industry Bhd, which posted a 11.2% fall in third quarter net profit, has secured new clients in Australia and New Zealand as they account for about 30% of its current total exports.

In a bourse filing, the group said net profit for the quarter ended Sept 30, 2016 (3QFY16) fell to RM6 million or 2.21 sen a share from RM6.76 million or 2.48 sen a share a year earlier, due to lower foreign exchange gain as well as a minor loss suffered by one of its associate companies.

Revenue for the quarter rose 9.4% at RM94.07 million from RM86.01 million in 3QFY15, as export and local sales grew 6.7% and 12.8% respectively and it declared a dividend of 1.32 sen, payable on Dec 22.

For the nine-month period (9MFY16), net profit fell 7.7% to RM18.59 million or 6.82 sen a share, from RM20.13 million or 7.39 sen a share in 9MFY15, partially attributable to substantial expenses for air freight costs for a new product launch.

Cumulative revenue grew 7.2% to RM280.8 million from RM261.84 million a year ago, mainly attributed to a 14.6% increase in export sales.

Sapura Industrial Bhd’s net profit rose 17.3% to RM1.59 million for the third quarter ended Oct 31, 2016 (3QFY17), from RM1.36 million a year earlier.

In a bourse filing, the group said revenue grew marginally by 0.3%, from RM55.95 million to RM56.13 million.

For the first nine months of FY17 however, Sapura Industrial’s net profit dipped 1.9% to RM2.58 million, from 2.63 million in 9MFY16. Revenue slid 7.5% to RM150.89 million, from RM163.17 million a year earlier.

The drop in year-to-date revenue and profit was due to lower domestic volume for certain vehicle models. The group is involved in the automotive components manufacturing business.

The group declared a single-tier interim dividend of three sen per share payable on Dec 14.

Despite higher revenue, Shangri-La Hotels (M) Bhd saw its net profit decline 28% to RM29.88 million in the third quarter ended Sept 30, 2016 (3QFY16), from RM41.72 million a year ago, due to unfavourable foreign exchange rates.

In a bourse filing, the hotel operator said its revenue, however, grew 4.5% to RM142.26 million in 3QFY16, from RM136.09 million in 3QFY15, driven by higher occupancy and average room rates.

For the nine months period (9MFY16), Shangri-La's net profit also dropped 22% to RM64.92 million, compared with RM83.1 million a year before. Revenue however, rose 6% to RM389.09 million in 9MFY16, from RM366.3 million in 9MFY15.

Excluding the currency translation effects, Shangri-La’s net profit for 9MFY16 was RM68.68 million, an 11% increase over 9MFY15, underpinned by improved contributions from the group’s resorts in Sabah and Penang.

DutaLand Bhd said its application for a waiver from being classified as an affected listed issuer has been approved by Bursa Malaysia.

The group had made the application on Aug 29 as its revenue for the financial year ended June 20 2016, was below the required level under the listing requirements, which is at least 5% of the issued and paid-up capital.

The group posted a net loss of RM3.72 million for the year compared with a net profit of RM48.69 million for the previous year. Revenue was 19% lower at RM37.79 million against RM46.65 million previously.

Dutaland had blamed the revenue shortfall to the poor contribution from its plantation and property divisions. It said the plantation division’s revenue was affected by the El Nino phenomenon resulting in a 14% drop in its palm oil output.

TH Heavy Engineering Bhd’s 70%-owned THHE Offshore Services Sdn Bhd (THHEOS) has received a winding-up petition from Zelican Sdn Bhd over a claim of RM1.095 million.

According to a bourse filing, Zelican presented the petition to the High Court on Oct 31, with hearing fixed for Jan 16 next year.

Zelican is contending that THHEOS owes the amount for the supply of manpower and services for the Permas project, said TH Heavy.

It added that THHEOS has sought legal advice and intends to fight the petition.

Barakah Offshore Petroleum Bhd has won a contract for the installation of an effluent discharge pipeline for Labuan Crude Oil Terminal worth RM25 million.

According to its bourse filing, Barakah secured the contract via its unit PBJV Group Sdn Bhd from Sabah Shell Petroleum Company Ltd for the provision of effluent discharge pipeline replacement for the Labuan Crude Oil Terminal or LCOT.

The contract involves engineering, procurement, construction, installation and commissioning of a new effluent discharge pipeline in LCOT.