MRCB, OSK International, Batu Kawan, KLK, Xidelang, Petronas Gas, KLCC Property and TNB

KUALA LUMPUR (Aug 15): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Aug 16) may include the following: MRCB, OSK International, Batu Kawan, KLK, Xidelang, Petronas Gas, KLCC Property and TNB

Malaysian Resources Corp Bhd (MRCB) has secured a contract in relation to the construction of the Damansara-Shah Alam Elevated Highway (DASH) for RM369 million.

MRCB said it received a Letter of Acceptance from Turnpike Synergy Sdn Bhd to undertake the contract.

DASH is a 20.1km three-lane dual carriageway connecting Puncak Perdana in Shah Alam to Damansara Perdana in Petaling Jaya.

MRCB said the 26-month project is anticipated to commence by end-August this year, to be completed by October 2019.

Higher income and net fair value gain on financial instruments pushed up OSK Ventures International Bhd’s (OSKVI) quarterly net profit by more than 12 times.

Net profit totaled RM29.54 million for the second quarter ended June 30, 2017, compared with RM2.38 million a year earlier. Earnings per share rose to 14.96 sen, from 1.2 sen in 2QFY16.

The group said higher income and net fair value gain on financial instruments was RM30.08 million, as against RM570,000 previously.

Revenue surged 116.5% to RM26.8 million, from RM12.4 million previously.

Batu Kawan Bhd’s net profit dropped 46% to RM80.78 million for the third quarter ended June 30, 2017, from RM148.47 million in the previous corresponding period, mainly due to substantially lower profit in its manufacturing segment.

Though its plantation segment recorded an 11% rise in profit to RM235.03 million on higher crude palm oil and palm kernel selling prices, besides higher fresh fruit bunches production, this was not enough to offset the declines in both its manufacturing and property divisions.

Its manufacturing profit fell 86% year-on-year to RM19.21 million from RM140.59 million though revenue rose 22% to RM2.5 billion, as its oleochemical division reported a loss due to higher raw materials cost and a RM60.33 million stocks write-down.

The group’s revenue, however, rose 24% to RM5.01 billion from RM4.04 billion a year ago, due to higher contributions from both its plantation and manufacturing segments.

Kuala Lumpur Kepong Bhd's (KLK) net profit more than halved from RM263.71 million last year to RM121.83 million for the three months ended 30 June, 2017, despite a 24.2% revenue growth to RM4.87 billion, from RM3.92 billion recorded in the preceding year, due to losses in its manufacturing segment.

KLK said that this brings the company’s year-to-date net profit (9MFY17) to RM801.03 million, which saw a reduction of 37.5% from RM1.28 billion registered last year.

Cumulative revenue for the first three quarters, meanwhile, increased by 32.4% to RM15.84 billion, versus RM11.96 billion previously.

KLK’s manufacturing segment was the only segment to record losses, at RM21.9 million, despite achieving a 23.1% growth in its revenue to RM2.4 billion for the quarter.

Xidelang Holdings Ltd’s net profit in the second quarter ended June 30, 2017 almost tripled to RM4.32 million or 0.64 sen per share from RM1.6 million or 0.24 sen per share a year earlier, thanks to enhanced sales performance.

The China-based casual and sports shoemaker said revenue stood at RM139.59 million, an increase of 19% from the RM117.32 million previously.

The increase in topline, said the group, was mainly attributed to increased sales of sports shoes, in line with the gradual recovery in market demand.

Petronas Gas Bhd’s (PetGas) net profit rose 5.34% to RM425.33 million or 21.49 sen per share in the second quarter ended June 30, 2017, from RM403.75 million or 20.4 sen a year ago, due to higher gross profit and margin across all segments, on account of higher revenue.

Quarterly revenue was up 4.88% to RM1.17 billion, from RM1.12 billion a year ago, due to solid plant and facilities operational performance and higher utilities sales volume and prices.

The higher revenue was further supported by higher gas transportation revenue resulting from downwards revision of Gas Transportation Sabah tariff in the corresponding quarter, as well as from higher regasification revenue due to foreign exchange impact, PetGas added.

The group declared a second interim dividend of 16 sen per share, payable on Sept 14.

KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), collectively known as KLCCP Stapled Group, reported a slight increase in net profit in the second quarter ended June 30, 2017 to RM177.96 million from RM177.86 million a year ago, driven by earnings growth from the office and retail segments.

Earnings per stapled security rose to 9.86 sen from 9.85 sen.

Quarterly revenue also grew by a marginal 0.8% to RM337.52 million

The group declared a second interim income distribution of 8.6 sen per stapled security totalling RM155.26 million, payable on Oct 4. Out of this, dividend declared under KLCCP was 3.16 sen and KLCC REIT 5.44 sen.

Tenaga Nasional Bhd (TNB) has secured RM339 million financing for its first Large Scale Solar (LSS) project in Malaysia.

The national utility corporation said its unit TNB Sepang Solar Sdn Bhd (TSS) had secured the amount through Affin Islamic Bank Bhd, who will be providing funding and working capital requirements for the said project.

TSS was set up as a special purpose vehicle to undertake the project, which was awarded by the Energy Commission through a competitive bidding exercise, TNB said.