KUALA LUMPUR (Aug 22): Based on corporate announcements and news flow today, companies in focus on tomorrow (Wednesday, Aug 23) may include: Hock Seng Lee, Kerjaya Prospek, Boon Koon, Hartalega, Innoprise, RCE Capital, Far East, Hektar REIT, IGB Corp, UMW-OG, Boustead Plantations, Inari Amertron, Perisai and DNeX.
Hock Seng Lee Bhd’s net profit dipped 21% to RM9.53 million in the second quarter ended June 30, 2017, from RM12.08 million a year earlier, due to lower construction income.
Revenue fell to RM106.39 million from RM107.05 million due to timing of progress claims for construction works, as major contract works are at their initial stages of execution.
Cumulative six months' net profit slid to RM20.8 million from RM28.34 million a year earlier. Revenue decreased to RM211.57 million from RM249.31 million.
The group declared a tax-free dividend of one sen a share. The ex and payment dates fall on Sept 15 and Oct 10 respectively.
Kerjaya Prospek Group Bhd's net profit for its second quarter ended June 30, 2017 rose 34% to RM32.9 million from RM24.58 million a year earlier, driven by its construction segment.
Revenue for the quarter rose to RM240.2 million in 2QFY17 from RM193.48 million previously.
For the six months ended June 30, Kerjaya Prospek’s net profit jumped to RM61.75 million from RM48.26 million, on the back of revenue of RM473.42 million compared with RM379.41 million in 1HFY16.
Boon Koon Group Bhd's saw an almost tenfold surge in its net profit to RM3.12 million in its first quarter of financial year 2018 (1QFY18) ending March 31, 2018 from RM300,000 recorded in 1QFY17.
The group said this was on the back of a 10% rise in revenue at RM29.33 million from RM26.55 in the preceding year.
Hartalega Holdings Bhd will allocate about RM200 million to RM300 million per year on its remaining three Next Generation Integrated Glove Manufacturing Complex (NGC) plants, which are expected to be completed by 2021.
Managing director Kuan Mun Leong said about RM200 million to RM300 million will be allocated for construction of the NGC plant per year in the next three to four years. The completion of the construction of the six NGC plants will take about RM2.2 billion, of which about RM1.2 billion has been allocated for the first three plants.
“The master plan is to complete the NGC by 2021, but Plant 6 depends on supply and demand situation,” Kuan said after its annual general meeting.
Innoprise Plantations Bhd saw its pre-tax profit in the second quarter ended June 30, 2017 jump 48% to RM11.87 million, thanks to higher fresh fruit bunch yield.
The latest quarterly profit excluded contribution from the log extraction operation, which has ceased operation since June 2016.
For the cumulative six months, pre-tax profit surged 80.3% to RM23.75 million.
However, the planter added that — excluding the discontinued log extraction operation — pre-tax profit would have increased by 168%, measured on a fully-comparable basis.
Innoprise has declared an interim dividend of 2 sen per share, which will be paid on Oct 26.
RCE Capital Bhd's first quarter net profit grew 19.4% to RM20.93 million from RM17.53 million a year earlier, on higher net interest income as well as relatively stable loan impairment.
Earnings per share for the quarter ended June 30, 2017 rose to 6.18 sen from 5.4 sen previously.
Quarterly revenue increased 9.9% to RM57.1 million from RM51.94 million in the previous corresponding quarter.
Far East Holdings Bhd is buying a 3,204 acre plot of land from PHG Plantation Sdn Bhd for a total price of RM110.57 million.
The group said it has entered into a sale and purchase agreement with the PHG Plantation yesterday, to buy the land located in Rompin, Pahang.
The proposed acquisition is in line with its expansion plan and would broaden the group’s core income base, through increased plantation acreage at a reasonable cost and at a strategic location.
Hektar Real Estate Investment Trust's (Hektar REIT) rights issue has been oversubscribed by 13.32%.
The company said it received acceptances and excess applications for 69.09 million rights units, which is 8.12 million units more than the 60.97 million units made available.
The rights units are priced at RM1.11 per unit on the basis of 7 units for every 46 units currently held which is to part finance the company's proposed acquisition of the 1Segamat Shopping Centre in Johor.
IGB Corp Bhd's net profit for its second quarter ended June 30, 2017 jumped 41% to RM76.3 million from RM54.1 million previously mainly due to higher contributions from its property investment and hotel divisions.
This is despite the group's quarterly revenue falling by 6% to RM246.6 million from RM262.5 million in 2QFY16 on lower hotel contribution.
Meanwhile, its net profit for the first half jumped 81% to RM191.5 million from RM105.9 million thanks to a one-off gain of RM34.3 million from the sale of Renissance KL, and improved contributions from its property investment and hotel divisions though revenue retreated 8% to RM501.4 million from RM542.7 million.
UMW Oil & Gas Corp Bhd (UMW-OG) said its losses for the second quarter ended June 30, 2017 narrowed to RM50.99 million from RM67.25 million a year earlier thanks to a higher rig utilisation rate coupled with lower losses from oilfield services.
For the first half of FY17, UMW-OG’s net loss widened to RM155.1 million from RM132.32 million a year earlier, no thanks to the lower time charter rates and reduced foreign exchange gain on translation.
Six-month revenue fell 1.61% to RM214.19 million from RM217.69 million previously, amid soft demand in the oilfield services, as well as the lower charter rates from newly secured drilling contracts.
The group also announced that it has won a RM113 million contract for the provision of jack-up drilling rig services.
The contract was awarded to its indirect wholly-owned subsidiary UMW Offshore Drilling Sdn Bhd by Repsol Oil & Gas Malaysia Ltd.
Boustead Plantations Bhd is planning to buy 42 parcels of plantation land in Sabah, which measure a collective 11,600ha, for RM750 million.
The group has issued a letter of intent (LoI) to the land owner — Pertama Land & Development Sdn Bhd — which has been accepted, for the proposed buy.
The plots are located in the districts of Labuk and Sugut. Following the acceptance of the LoI by Pertama Land & Development, it said a due diligence will be conducted within 30 days.
Inari Amertron Bhd achieved a 68% surge in net profit to RM65.62 million for the fourth quarter ended June 30, 2017 from RM39.92 million a year ago on higher demand of its products and gain from disposal of quoted shares.
The big jump in the fourth quarter's earnings lifted Inari's annual profit to a high of RM227.85 million for the financial year ended June 30, 2017 (FY17).
Meanwhile, its quarterly revenue expanded 34.4% to RM345.65 million from RM257.21 million a year ago amid higher demand for its current and new products.
For FY17, its net profit surged nearly 54% to a record high of RM227.85 million from RM148.25 million a year ago.
Annual revenue climbed 12.8% to an all-time high of RM1.18 billion from RM1.04 billion in FY16.
Perisai Petroleum Teknologi Bhd said three clients are claiming RM13.68 million in losses and damages from its wholly-owned unit, Perisai Drilling Sdn Bhd (PD), for an alleged breach of contractual obligation.
The three clients are Konsortium Pelabuhan Kemaman Sdn Bhd (KPK), Pangkalan Bekalan Kemaman Sdn Bhd (PBK) and EPIC Mushtari Engineering Sdn Bhd.
PD has been given a week to pay the amount, failing which the claimants plan to commence legal proceeding against the company.
Main Market-listed Dagang Nexchange Bhd's (DNeX) net profit came in 87% lower at RM11.93 million for the second financial quarter ended June 30, 2017 (2QFY17) compared with RM89.5 million a year earlier, largely because last year's earnings had booked in a pre-acquisition gain of excess fair value of RM85.3 million for its Ping Petroleum Ltd buy.
Meanwhile, the group's quarterly revenue grew 4% year-on-year to RM49.11 million from RM47.42 million, on the back of the consolidation of OGPC Sdn Bhd's results, recurring income from the operation and maintenance of the VEP & RC system, and oilfield drilling services to Petronas.
For the first half of FY17 DNeX's net profit fell 72% to RM27 million from RM94.87 million. Net profit was affected by the volatility of crude oil price and margin compression in the oil and gas industry even though revenue clocked in 25% higher at RM92.93 million against RM74.31 million a year ago.