BCorp, Crescendo, Apollo Food, Quality Concrete, SMTrack and FoundPac

KUALA LUMPUR (Dec 29): Based on corporate announcements and news flow today, stocks that will be in focus on Friday (Dec 30) may include: BCorp, Crescendo, Apollo, Quality Concrete, SMTrack and FoundPac.

Berjaya Corp Bhd (BCorp) saw its net profit rise 44% to RM176.50 million or 3.27 sen per share in the second quarter ended Oct 31, 2016 (2QFY17), versus RM122.25 million or 2.47 sen previously, driven by improved contributions from its property investment and development business segment.

Quarterly revenue was up 9% at RM2.46 billion versus RM2.26 billion a year earlier, also boosted by its property investment and development business, as well as its motor distribution business, which saw higher sales of new cars.

Notably, its restaurant and cafe business also recorded higher profit due to higher contribution from Starbucks operations in Malaysia, and reduced losses from the closure of certain non-performing franchised food outlets.

For its cumulative nine months (9MFY16), BCorp's net profit came in 36% lower at RM113.82 million versus RM178.39 million a year ago, though revenue climbed 7% to RM4.68 billion, from RM4.39 billion.

On prospects, the company said given prevailing economic conditions and the global financial outlook, it expects the group’s operating environment to be very challenging, going forward.

Crescendo Corp Bhd's net profit for the third quarter ended Oct 31,2016 (3QFY17) ballooned 373.2% to RM7.98 million, from RM1.69 million a year earlier, mainly due to higher sales of properties.

It told the stock exchange its revenue climbed 98.3% to RM72.45 million, against RM36.54 million a year ago.

For the cumulative nine months (9MFY17), Crescendo's net profit surged 305.3% to RM58.85 million versus RM14.52 million in 9MFY16, while revenue rose 27.6% to RM169.96 million, from RM133.17 million.

Going forward, the group expects the remaining FY17 to continue to be challenging, with uncertain global economic scenario, tightening credit control by banks and increase in cost of doing business.

Apollo Food Holdings Bhd reported a 55% fall in net profit to RM4.29 million in its second quarter ended Oct 31, 2016 (2QFY17), from RM9.64 million a year ago, on weaker sales and higher raw material costs.

Revenue slid 11% to RM48.13 million from RM53.8 million a year ago, as it recorded lower sales in both its local and overseas markets, it told the stock exchange.

For the cumulative six months ended Oct 31, 2016 (1HFY17), its net profit declined 52% to RM9.99 million, from RM20.83 million in the same period last year, though revenue dipped 5% to RM98.11 million, from RM103.73 million.

Moving forward, Apollo expects its operating environment to be tougher, in view of escalating raw materials cost and ringgit volatility.

Quality Concrete Holdings Bhd, which sank into deeper losses in the third quarter ended Oct 31, 2016 (3QFY17), is hoping to achieve better results in the coming quarters.

According to its bourse filing today, its net loss worsened 88% to RM3.86 million in 3QFY16 versus RM2.05 million a year earlier, due mainly to a contract sum deduction for its completed water infrastructure project.

This is despite a 13% gain in quarterly revenue to RM43.76 million, from RM38.64 million, underpinned by contributions from its construction and development division, which saw a topline rise of RM16 million on revenue recognition from a development project.

Its manufacturing division's revenue climbed RM1.7 million on contribution by supply of ready-mixed concrete to a PR1MA project.

For the cumulative nine-month period (9MFY17), Quality Concrete's net loss improved to RM6.80 million, against RM9.86 million in 9MFY16.

SMTrack Bhd, which will hold its annual general meeting (AGM) tomorrow, saw its external auditor Messrs KC Chia & Noor express a qualified opinion on its financial statement for the financial year ended July 31, 2016 (FY16).

This was revealed when the asset tracking and supply chain management solutions provider finally submitted its long overdue 2016 annual report to Bursa Malaysia today.

According to SMTrack's bourse filing, the auditor highlighted three issues that remained unresolved during FY16. They are: the carrying value of certain assets related to a project that was terminated in FY15, accounts’ opening balances, and a gain on disposal of a subsidiary company.

“Although annual depreciation has been provided by the management, we were unable to ascertain the directors’ assessment of the recoverable amount of the assets and we could not determine the effect of adjustments, if any, that might have been found to be necessary on the financial position of the group and the company as at FY16, or on its financial performance and cash flows for the financial period then ended,” it said.

The external auditor also said it was not able to access its predecessor Baker Tilly’s audit working papers, which led to inability to verify SMTrack account’s opening balances.

Lastly, the audit firm said it was not able to verify a gain on the disposal of SMTrack’s subsidiary, called LEYS International Ltd.

Precision engineering parts manufacturer and supplier FoundPac Group Bhd debuted on Bursa Malaysia today at 61 sen per share, which is at a 7 sen or 12% premium to its initial public offering (IPO) issue price of 54 sen.

A total of 52.3 million shares exchanged hands before the counter closed at 66 sen, giving it a market capitalisation of RM244.2 million.

The IPO raised a total of RM21.6 million through the public issue of 40 million new ordinary shares, at an offer price of 54 sen each. The IPO was oversubscribed by 14.21 times.

Of the total proceeds raised, RM4 million will be used to establish sales offices in California, U.S., and Milan, Italy. The group aims to strengthen its presence there by leveraging on the company’s current design and manufacturing expertise in precision engineering parts.

The group’s chief executive officer Lee Chun Wah said the group’s expansion into the U.S. and Italy is primarily to leverage on the design & development (D&D) expertise offered in those markets. The expansion is also expected to diversify the group’s revenue streams, as it taps into a wider customer base.