Kanger, Malakoff, T7 Global, Tiong Nam, PetChem, Kumpulan Jetson, IOI Corp, Signature, DNeX, CIMB, WCE Holdings, Padini and Ho Hup

KUALA LUMPUR (Feb 20): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, Feb 21) could include: Kanger International Bhd, Malakoff Corp Bhd, T7 Global Bhd, Tiong Nam Logistics Holdings Bhd, Petronas Chemicals Group Bhd (PetChem), Kumpulan Jetson Bhd, IOI Corp Bhd, Signature International Bhd, Dagang Nexchange Bhd (DNeX), CIMB Group Holdings Bhd, WCE Holdings Bhd, Padini Holdings Bhd and Ho Hup Construction Co Bhd.

Kanger International Bhd, a bamboo flooring manufacturer, has teamed up with the Forest Research Institute Malaysia (FRIM) to jointly establish a bamboo plantation on a commercial scale in Malaysia.

The two parties will also work together on the research and development, manufacturing and production of bamboo products.

Kanger and FRIM today signed a memorandum of understanding (MoU) on the collaboration which is effective for three years, and will enter into more binding agreements in future.

In a filing with Bursa Malaysia today, the ACE Market-listed Kanger said the MoU is in line with the group’s objective of diversifying its earnings base and exploring new markets by developing new bamboo-related products and plantations.

“Kanger has been working on establishing a commercially-viable bamboo plantation in Malaysia, since pre-initial public offering. This collaboration with FRIM may be the final step towards that goal,” said Kanger deputy chairman Datuk Kuan Ah Hock in a separate statement today.

Malakoff Corp Bhd’s net profit fell 15% to RM90.23 million or 1.8 sen a share in the fourth quarter ended Dec 31, 2016 (4QFY16), from RM106.17 million or 2.12 sen a share a year ago, mainly due to additional depreciation resulting from a change in estimate of residual values of gas-fired power plants.

The lower figure was also dragged down by lower contribution from Port Dickson Power Bhd, due to lower tariff of the extended power purchase agreement (PPA).

Quarterly revenue for 4QFY16, however, grew 24.5% to RM1.71 billion, from RM1.38 billion in 4QFY15, thanks to revenue contribution from Tanjung Bin Energy Sdn Bhd, which entered into commercial operation in March last year.

For FY16, Malakoff’s net profit dropped 21.4% to RM355.46 million or 7.11 sen a share, from RM452.39 million or 9.98 sen a share in FY15 for the same reason. Revenue expanded 15% to RM6.1 billion in FY16, from RM5.3 billion in FY15.

Gas Generators (M) Sdn Bhd (Gastec), a wholly-owned subsidiary of T7 Global Bhd, is targeting Myanmar for power plant projects with its new enhanced capacity.

Gastec CEO Ken Tan said the country is one of Gastec’s prime targets and Vietnam as well, as the company is in a position to further spur its growth in Asian markets.

“It is notable that with Myanmar facing power supply shortage, this is a key target in that country besides the oil and gas (O&G) sector,” Tan said, after the opening of Gastec’s new workshop at Balakong, Seri Kembangan today.

Tiong Nam Logistics Holdings Bhd saw its net profit fall 21.7% to RM17.3 million in the third financial quarter ended Dec 31, 2016 (3QFY17), from RM22.1 million a year ago, on lower contribution from its core logistics and warehouse services segment.

Revenue also dropped 19.9% to RM139.3 million in 3QFY17, from RM173.9 million in 3QFY16.

“We believe that our growth would be back on track once the additional capacity comes onstream in the near term,” said Tiong Nam managing director Ong Yoong Nyock in a statement today.

For the cumulative nine-month period (9MFY17), Tiong Nam's net profit rose 1.6% to RM43.75 million or 10.5 sen a share, from RM43.06 million or 10.34 sen a share a year ago, even though revenue fell 7.8% to RM411.68 million, from RM446.7 million in 9MFY16, due to lower billings from its property development division.

Meanwhile, Tiong Nam said it has spent RM96.8 million in capital expenditure in 9MFY17, as part of its ongoing expansion programme.

Petronas Chemicals Group Bhd's (PetChem) net profit for the fourth quarter ended Dec 31, 2016 (4QFY16) rose 40.2% to RM987 million or 12 sen per share, from RM704 million or 9 sen per share a year ago, due to higher sales volumes, lower unit cost, favourable spreads and stronger US dollar.

Revenue increased 14.44% to RM3.95 billion in 4QFY16, from RM3.45 billion in 4QFY15, PetChem reported in a filing on the bourse today.

For the full-year FY16, net profit climbed 5% to RM2.93 billion or 37 sen per share, versus RM2.78 billion or 35 sen per share a year ago, as revenue gained 2% to RM13.86 billion from RM13.54 billion.

The group declared a second interim dividend of 12 sen per share for FY16, payable on March 21.

PetChem mentioned that the group will commence operations at its new world-scale fertiliser plant in Sipitang, Sabah in the first quarter of 2017.

Kumpulan Jetson Bhd’s joint venture (JV) with a Chinese firm has bagged a RM201.87 million sub-contract for the Sungai Besi-Ulu Kelang (SUKE) elevated expressway.

The unincorporated JV, in which Kumpulan Jetson is invovled via its wholly-owned subsidiary Jetson Construction, is with The Fifth Branch of CCCC Third Highway Engineering Co Ltd, which is affiliated with the China Communications Construction Company Ltd.

In a stock exchange filing, Kumpulan Jetson said the project was awarded by BBSB Holdings Sdn Bhd, and that the JV has accepted the sub-contract for the CB5 package of the SUKE project, which involves the "construction and completion of the mainline and other associated works from CH. 21200 to CH. 24000".

“The project is expected to contribute positively to the earnings of Jetson and its subsidiaries for financial years ending 2017 to 2019,” said the group.

IOI Corp Bhd's net profit fell 97.78% to RM15.6 million or 0.25 sen per share in the second quarter ended Dec 31, 2016 (2QFY17), from RM703.7 million or 11.17 sen a year ago, mainly due to some RM330 million net foreign currency translation loss on its foreign currency-denominated borrowings.

Meanwhile, the quarter’s underlying profit before tax (PBT) of RM458.8 million was 26% lower than RM616.9 million the year before, IOI corp said in a stock exchange filing today.

This was mainly due to lower contribution from its resource-based manufacturing segment, though partially cushioned by higher contribution from its plantation segment, IOI said.

Quarterly revenue, however, climbed 24% to RM3.67 billion from RM2.97 billion a year earlier.

The group declared a first interim dividend of 4.5 sen for the quarter, up 29% from the 3.5 sen it announced previously.

Signature International Bhd’s net profit declined by 40.6% to RM3.36 million or 1.4 sen a share in the second financial quarter ended Dec 31, 2016 (2QFY17), from RM5.65 million or 2.4 sen a share a year ago, on lower project revenue from its kitchen and wardrobe segment.

Revenue for 2QFY17 fell 26% to RM40.66 million, from RM54.97 million in 2QFY16, as the kitchen and wardrobe segment saw a 38.6% year-on-year decline in revenue.

For the cumulative six months (1HFY17), Signature posted a net profit of RM6.7 million or 2.8 sen a share, a 36.5% decline from RM10.54 million or 4.4 sen a share in 1HFY16, while revenue fell 16.4% to RM83.46 million, from RM99.84 million.

"With an unbilled order book of RM200 million as at end-December 2016 and with continuous effort to replenish existing order book, the group is expected to achieve satisfactory performance from its project division, which has been the strong pillar of growth for the group," Signature said in a filing with Bursa Malaysia today.

Dagang Nexchange Bhd's (DNeX) net profit surged over eight times to RM30.62 million or 1.77 sen per share in the fourth quarter ended Dec 31, 2016 (4QFY16), from RM3.79 million or 0.49 sen per share a year ago, thanks to contribution from its 30%-owned associate Ping Petroleum Ltd (PPL).

Revenue more than doubled to RM67.31 million in 4QFY16, from RM27.91 million in 4QFY15, mainly contributed by partial revenue recognition on the Vehicle Entry Permit (VEP) and Road Charges (RC) contract of RM17.1 million, as well as revenue contribution from its newly-acquired subsidiaries — OGPC Sdn Bhd and OGPC O&G Sdn Bhd.
The group also declared a second interim dividend of 0.5 sen per share for FY16, payable on Feb 28.

CIMB Group Holdings Bhd’s 92.5%-owned PT CIMB Niaga Tbk saw its net profit soar 516% to 2.04 trillion rupiah for the financial year ended Dec 31, 2016 (FY16), from 330.9 billion rupiah in the previous year.

Net interest income (NII) for the year rose 4% to 11.43 trillion rupiah, from 10.98 trillion rupiah a year earlier, while non-interest income rose 6% to 3.98 trillion rupiah, from 3.76 trillion rupiah.

Operational expenses for the year was lower at 12.7 trillion rupiah, from 14.18 trillion rupiah in the previous year.

CIMB Niaga’s gross non-performing loan (NPL) ratio for the year was slightly higher at 3.93%, compared with 3.82% in FY15. Its net interest margin (NIM) stood at 5.47% versus 5.17%.

Its loan-to-deposit ratio (LDR) was higher at 95.37%, compared with 94.87% a year earlier.

CIMB Niaga’s total asset size grew to 236.95 trillion rupiah as at Dec 31, 2016, compared with 233.24 trillion rupiah in the previous year.

WCE Holdings Bhd, formerly Kumpulan Europlus Bhd, posted a net profit of RM5.66 million in its third quarter ended Dec 31, 2016 (3QFY17), versus a net loss of RM896,000 a year ago, as revenue improved.

Revenue grew 21% to RM181.19 million, from RM149.88 million a year ago, on higher construction revenue recognised in the current quarter, pursuant to its IC interpretation 12 (IC12) Service Concession arrangements pertaining to its West-Coast Expressway project.

In the preceding year’s quarter, a reversal of interest income on the income statement that was set off against infrastructure development expenditure had contributed to the net loss, WCE Holdings said in a filing on Bursa Malaysia today.

Padini Holdings Bhd's net profit jumped 64.7% to RM54.47 million or 8.28 sen a share in its second financial quarter ended Dec 31, 2016 (2QFY17), from RM33.07 million or 5.03 sen a share a year ago, on improved gross profit margins, as there were less markdowns during the quarter under review.

Revenue for 2QFY17 grew 25.4% to RM426.65 million, from RM340.38 million in 2QFY16, on positive same store sales growth and the eight Brands Outlet stores and five Padini Concept Stores that were opened after 2QFY16.

The group also declared a third interim dividend of 2.5 sen per share for the financial year ending June 30, 2017 (FY17), payable on March 27.

For the first half of FY17 (1HFY17), the group’s net profit increased by 28% to RM83.09 million or 12.63 sen a share, from RM64.90 million or 9.86 sen a share a year ago, while revenue rose 20.8% to RM736.68 million in 1HFY17, from RM609.95 million in 1HFY16.

"Although there was also a 20% (RM18.3 million) increase in operating expenses that was mainly contributed by the increase from rentals and staff salaries for the new stores, the increase in revenue and the improvement in gross margins sufficiently covered for it," said Padini.

Ho Hup Construction Co Bhd's net profit fell 52.4% to RM9.2 million or 2.62 sen a share in the fourth quarter ended Dec 31, 2016 (4QFY16), from RM19.35 million or 5.58 sen a share a year ago, on higher operating cost from interest subsidy for purchasers and facility fees for loans undertaken during the current quarter.

Revenue also dropped 48.1% to RM44.71 million in 4QFY16, from RM86.1 million in 4QFY15, due to lower revenue from the building materials division.

For the full year FY16, Ho Hup saw its net profit fall 7.2% to RM65.85 million or 18.86 sen a share, from RM70.93 million or 20.67 sen a share in FY15, on higher finance cost due to additional financing obtained and higher operating expenses.

Revenue declined 18.3% to RM243.85 million in FY16, from RM298.55 million in FY15, due to lower revenue recorded by its building materials division and its in-house Aurora Place project, which is at an advanced stage of completion.