KUALA LUMPUR (Aug 29): Based on corporate announcements on Bursa Malaysia and news flow today, companies that will be in focus on Wednesday (Aug 30) may include: WCT Holdings, AirAsia, 7-Eleven Malaysia, Telekom Malaysia, MSM Malaysia, LBS Bina Group, MY E.G. Services, YTL Power International, Petroliam Nasional, MRCB, RHB Bank, PPB Group, OSK Holdings, DutaLand, Sunway, Eastern & Oriental, and Tropicana Corp.
WCT Holdings Bhd has bagged a contract worth RM840 million from Prasarana Malaysia Bhd for the construction and completion works relating to Light Rail Transit Line 3 (LRT3) from Bandar Utama to Johan Setia.
WCT expects the works to be completed within 33 months from the date of the letter of acceptance.
WCT will also be partnering with Singapore's CCCG Overseas Real Estate Pte Ltd to develop land in Tun Razak Exchange that it bought for RM223 million in October 2015.
AirAsia Bhd is seeking back-door listing of its Indonesian unit, PT Indonesia AirAsia (IAA), on the Jakarta Stock Exchange.
AirAsia has unveiled its proposed debt-and-share-swap deal to inject a 57.25% stake of IAA into Indonesian-listed logistics and warehousing company PT Rimau Multi Putra Pratama TBK (RMPP).
It expects the proposed transaction to be done by 4Q of 2017, and RMPP will then be the new holding company of IAA.
In another development, AirAsia registered a 46.49% revenue growth to RM2.38 billion in the second quarter ended June 30, 2017 from RM1.62 billion a year earlier.
Net profit came in nearly 73% lower at RM92.45 million, from RM342.12 million, mainly due to deferred tax liabilities recorded in the quarter.
For the first half of the year, AirAsia's revenue grew 42.5% to RM4.6 billion from RM3.23 billion, with a lower net profit at RM762.4 million compared to RM1.22 billion previously.
AirAsia said the group is optimistic of achieving better results in FY17 compared with FY16.
7-Eleven Malaysia Holdings Bhd saw a 32.7% decline in net profit to RM10.15 million in 2QFY17 from RM15.07 million a year earlier, due to higher selling and distribution expenses.
Quarterly revenue was up 9.8% to RM555.21 million from RM505.7 million, mainly due to the Hari Raya festive period, and growth in its new and existing stores.
The weaker 2Q net profit dragged the group's earnings down by 41.4% to RM18.15 million in 1HFY17, from RM31 million a year ago.
Half-year revenue grew 4.4% to RM1.08 billion from RM1.03 billion in the prior corresponding six months.
On prospects, 7-Eleven Malaysia expects continued improvements in the next two quarters through cost management and commercial innovation and its "Back to Basics" programme.
Telekom Malaysia Bhd (TM)'s net profit rose 51% to RM210.48 million in 2QFY17, thanks to impact of foreign exchange gain on its borrowings.
Revenue declined 2% to RM2.98 billion from RM3.05 billion, due to contributions from data, voice, other telecommunication and non-telecommunication related services.
In 1HFY17, TM's net profit slid 5% to RM440.92 million from RM461.89 million, though revenue was up marginally from RM5.9 billion to RM5.94 billion.
Moving forward, TM said the group is accelerating execution to expedite its strategic goals of Deliver Convergence and Go Digital via "Perfexe 10".
MSM Malaysia Holdings Bhd posted a net loss at RM21.45 million in 2QFY17 from a net profit of RM23.68 million a year earlier, on higher production cost due costlier raw sugar.
Revenue rose to RM692.46 million from RM633.86 million previously on "improved selling price".
1HY17 net loss stood at RM56.07 million versus a net profit of RM83.02 million a year earlier. Revenue was higher at RM1.34 billion compared to RM1.19 billion.
Looking ahead, MSM expects results to improve in the near term as the group replenishes its raw sugar inventory at current lower market prices.
LBS Bina Group Bhd's net profit in 2QFY17 jumped 41.07% to RM28.43 million, from RM20.15 million last year, thanks to higher take-up rate across multiple property developments.
Revenue spiked 57.83% to RM356.09 million from RM225.61 million in 2QFY16.
For the first half of FY17, LBS Bina's net profit was 43.74% higher at RM53.2 million compared with RM37.02 million previously. Half-year revenue was also up by 41.62% to RM603.44 million, from RM426.08 million.
The group's prospects remain positive with total unbilled sales of RM1.395 billion, anchored by 18 ongoing projects and remaining land bank of 4,197 acres.
MY E.G. Services Bhd's net profit grew 17% to RM59.48 million in 4QFY17, from RM50.95 million, as topline improved.
Quarterly revenue came in 20% higher at RM105.11 million from RM87.37 million a year ago.
For FY17, net profit jumped 41% y-o-y to RM201.51 million from RM142.87 million, while cumulative revenue grew 32% to RM371.6 million from RM281.73 million.
Going forward, the group said online renewal of foreign workers' insurance and foreign worker services would be the primary revenue and profit contributor.
YTL Power International Bhd's net profit dropped 49.6% to RM199.48 million in 4QFY17 from RM395.92 million previously, mainly due to a one-off deferred tax credit at its associate in Indonesia last year.
Quarterly revenue rose 19.4% to RM2.59 billion from RM2.17 billion in 4QFY16.
For FY17, the group's net profit fell 36.6% to RM673.41 million from RM1.06 billion the previous year, while revenue slipped 4.6% to RM9.78 billion from RM10.25 billion.
On prospects, YTL Power said it is currently developing a 2 x 660-megawatt power plant in Java.
Malaysian Resources Corp Bhd (MRCB)'s revenue almost doubled to RM756.52 million in 2QFY17 from RM389.19 million a year ago, thanks to improved engineering and construction contribution.
Quarterly net profit nearly halved from RM45.5 million to RM23.37 million, as the year ago period had booked a disposal gain.
Net profit for 1HFY17 declined 32.18% to RM33.83 million from RM49.89 million, even as revenue jumped 55% to RM1.28 billion from RM825.21 million.
MRCB said its recent gain of worth of new contracts win has boosted its external orderbook to RM6.3 billion, and believes it can maintain its operating profit throughout FY17.
RHB Bank Bhd reported a 43% rise in 2Q net profit at RM500.96 million from RM350.17 million a year earlier, on higher net interest and Islamic banking income and lower allowance for bad loans.
Group revenue fell to RM2.63 billion in 2QFY17 from RM2.65 billion.
Net profit for the first half of FY17 rose to RM1 billion from RM915.05 million a year earlier, while revenue was lower at RM5.25 billion versus RM5.36 billion.
RHB said it expects to perform better in FY17 as it pursues "selective growth".
PPB Group Bhd has raised its capital expenditure (capex) by RM164 million mainly for investments in China flour mill, bringing its total capex this year to RM565 million.
Its grain and agribusiness, as well as film exhibition and distribution businesses will be each allocated with RM207 million.
For the current financial year, the company foresees stability in the grain and agribusiness segment, and expects its local mill's capacity to reach 2,500 tonnes per day.
OSK Holdings Bhd's net profit rose 32% to RM55.75 million in 2QFY17 from RM42.25 million a year ago, on higher profit generated from the financial services and investment holding segment.
Revenue fell 11.2% to RM274.85 million from RM309.53 million in 2QFY16.
In 1HFY17, the group's net profit slipped 1.7% to RM110.01 million from RM111.87 million a year ago, while revenue fell 12.2% to RM577.39 million from RM657.81 million.
Moving forward, OSK said performance of the property development division will be driven by sales and progress billings from the existing and new projects in Malaysia and Australia.
DutaLand Bhd returned to the black in 4QFY17 with a net profit of RM15.08 million versus a net loss of RM5.02 million a year ago, mainly on gain on disposal of land.
Quarterly revenue expanded over eight times to RM91.26 million from RM10.72 million in 4QFY16, thanks to higher contribution from the property division.
For FY17, it registered a net profit of RM13.22 million compared with a net loss of RM3.72 million in FY16, while revenue more than tripled to RM130.38 million from RM37.79 million.
DutaLand said it is negotiating to dispose of its plantation assets for RM750 million.
Sunway Bhd's net profit rose 28% to RM196.94 million in 2QFY17, versus RM154.36 million a year earlier, due to better performance from most business segments.
Revenue increased 7% to RM1.24 billion from RM1.16 billion a year ago.
Cumulative first half net profit grew 19% to RM304.86 million from RM256.46 million. Revenue increased 5% to RM2.33 billion from RM2.22 billion previously.
Sunway expects satisfactory performance for the rest of 2017, underpinned by unbilled property sales of RM1.2 billion and outstanding construction order book of RM4.3 billion.
Eastern & Oriental Bhd (E&O)'s net profit leaped by 6.6 times to RM21.24 million in 1QFY18 from RM3.24 million a year ago, mainly contributed by the property and investments and others segments.
Quarterly revenue also rose 6.2% to RM173.44 million from RM163.31 million, on higher contribution from the property segment.
Going forward, E&O is said to continue to pursue the sale of completed properties and the reclamation of STP2A in preparation for the launch of projects in 2019.
Tropicana Corp Bhd's net profit surged 58.6% to RM52.85 million in 2QFY17 from RM33.32 million a year ago on higher revenue, contributed by the group's core property development operations.
Revenue grew 24% to RM444.4 million from RM358.08 million.
In 1HFY17, its net profit jumped 76% to RM85.37 million from RM48.49 million. Its revenue grew 28.1% to RM826.26 million from RM645.01 million last year.
Tropicana said the group's unbilled sales of RM2.11 billion is expected to continue to contribute positively to the earnings in the near future.
Home BCON en WCT, AirAsia, 7-Eleven Malaysia, Telekom Malaysia, MSM, LBS Bina, MyEG, YTL Power, Petronas, MRCB, RHB Bank, PPB Group, OSK Holdings, DutaLand, Sunway, E&O and Tropicana