KUALA LUMPUR (Feb 26): Based on corporate announcements and news flow today, stocks in focus on Tues (Feb 27) may include: SimeProp, HLFG, Hong Leong Bank, UP, Alliance, PetDag, Wah Seong, Genting Plantations, WCT, Bumi Armada, Tiong Nam, Vertice, DNeX, Manulife, KPJ, Serba Dinamik, JAKS and Sunsuria.
Sime Darby Property Bhd’s (SimeProp) net profit in the second quarter ended Dec 31, 2017 (2QFY18) declined 5.06% year-on-year to RM138.08 million from RM145.44 million as higher taxes and lower results of joint ventures mitigated a jump in gross profit.
Also contributing to the decline was the absence of contribution from discontinued operations.
Quarterly revenue jumped 65.4% y-o-y to RM677 million from RM409.35 million.
For the six-month period ended Dec 31, 2017 (6MFY18), group net profit soared 90.07% y-o-y to RM559.77 million from RM294.51 million.
Hong Leong Financial Group Bhd's (HLFG) net profit grew 12% y-o-y to RM495.34 million for the second quarter ended Dec 31, 2017 (2QFY18), versus RM443.03 million due to higher contribution from the commercial banking division. Revenue increased marginally to RM1.37 billion from RM1.35 billion a year ago.
For its first half (1HFY18), net profit was 15% higher y-o-y at RM950.6 million versus RM829.23 million. Revenue rose 3% y-o-y to RM2.64 billion from RM2.54 billion.
Stronger contribution from its subsidiary Hong Leong Bank Bhd also contributed to better first half results.
Hong Leong Bank's net profit increased 24% y-o-y to RM683.07 million for 2QFY18 from RM549.94 million because of higher revenue of RM49.8 million, higher share of profit from the Bank of Chengdu and Sichuan Jincheng Consumer Finance joint venture of RM85 million, and lower allowance for impairment losses on loans, advances and financing of RM17.9 million.
Quarterly revenue rose 4% y-o-y to RM1.23 billion from RM1.18 billion. It also declared a single interim dividend of 16 sen per share for the financial year ending June 30, 2018, payable on March 28.
United Plantations Bhd declared total dividends of RM1.20 a share to reward its shareholders comprising a special dividend of RM1 and a final dividend of 20 sen for the financial year ended Dec 31, 2017.
The ex and payment dates for both dividends are April 26 and May 18, 2018, respectively.
Alliance Bank Malaysia Bhd's net profit dipped 5% y-o-y to RM122.55 million in the third quarter ended Dec 31, 2017 (3QFY17) from RM129.68 million, due to an increase in operating expenses and higher taxes.
Revenue grew 2.5% y-o-y to RM388 million from RM378.64 million on net interest income and other operating income. Operating expense rose RM41 million or 23.5% due to restructuring costs.
The group's and the bank's effective tax rate for the 3QFY17 and nine months ended Dec 31 was higher than the current statutory tax rate of 24% due to certain expenses being disallowed for tax purpose.
Year-to-date, its net profit declined to RM380.36 million from RM394.74 million a year earlier. Revenue increased to RM1.17 billion, from RM1.1 billion.
Petronas Dagangan Bhd (PetDag) saw its net profit grow 6.53% to RM278.58 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM261.49 million last year due to higher sales volume and increase in average selling price following the higher Mean of Platts Singapore (MOPS) prices.
The company attributed the higher earnings to both its retail and commercial segments. Revenue grew 17.81% to RM7 billion from RM5.94 billion last year.
It declared an interim ordinary dividend of 27 sen per share, and a special interim dividend of 22 sen for the financial year ended Dec 31, 2017 (FY17), payable on March 27.
Its annual net profit for FY17 surged to a record high of RM1.59 billion, up 69% y-o-y from RM944.61 million, fuelled by improved margins and gain from disposal of its subsidiaries. Annual revenue rose 24% to RM26.74 billion from RM21.53 billion, as average selling prices gained 25%.
Wah Seong Corp Bhd recorded a net profit of RM65.96 million in its fourth quarter ended Dec 31, 2017 (4QFY17) — against a net loss of RM198.33 million a year ago — as its revenue almost tripled while its oil and gas (O&G)-related operations returned to profit with increased project execution in the period.
Its O&G's profit before tax during the quarter came in at RM64 million versus a loss before tax of RM111.5 million a year ago.
Quarterly revenue jumped to RM979.2 million from RM330.22 million a year ago, as revenue under its O&G segment rose over six-fold with the higher project executions arising from order book commitments at the beginning of 2017.
For its full FY17, it returned to the black with a cumulative net profit of RM113.02 million against a net loss of RM228.3 million in FY16, mainly supported by the recovery in its O&G segment. Revenue about doubled y-o-y to RM2.49 billion from RM1.28 billion.
Genting Plantations Bhd's fourth quarter net profit fell 38% y-o-y to RM117.69 million from RM189.25 million.
But revenue for the quarter ended Dec 31, 2017 rose 3% y-o-y to RM528.42 million from RM513.41 million, on higher property sales and higher offtake of refined palm products and biodiesel.
But its bottom line was affected by higher cost of sales and higher finance cost, resulting in the decline in net profit for the quarter.
For the full financial year (FY17), net profit was slightly lower at RM337.7 million, versus RM338.21 million in FY16, while revenue jumped 22% to RM1.804 billion from RM1.480 billion.
It proposed a final single-tier dividend of 11 sen per share for the year.
WCT Holdings Bhd’s net profit soared nearly 17 times to RM59.27 million in its fourth quarter from RM3.51 million a year ago, thanks to stronger revenue and its other income which surged about six-fold.
Revenue for the quarter ended Dec 31, 2017 (4QFY17) grew 28% y-o-y to RM579.4 million from RM453.17 million. Other income jumped to RM248.67 million from RM42.38 million last year.
It proposed a final single-tier dividend of 3 sen per share in respect of FY17 compared to a total of 1.25 sen in FY16.
For its full FY17, WCT's net profit jumped 126% to RM154.62 million from RM68.38 million a year ago, though revenue slipped 1% to RM1.91 billion from RM1.93 billion.
Bumi Armada Bhd reported a fourth quarter net profit of RM63.82 million versus a net loss of RM1.38 billion a year earlier as the oil and gas support service provider registered higher revenue and lower impairment.
Revenue rose to RM662.15 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM106.25 million. It said impairment fell to RM664,000 from RM1.15 billion.
For the full year, net profit stood at RM352.25 million against a net loss of RM1.97 billion a year earlier. Revenue was higher at RM2.4 billion compared with RM1.32 billion.
Tiong Nam Logistics Holdings Bhd’s net profit dropped 43% to RM9.83 million for the third quarter ended Dec 31, 2017 (3QFY18) from RM17.26 million a year ago driven by the higher effective tax rate.
The effective tax rate increased by 25.2% to RM5.37 million in 3QFY18 against RM4.29 million in the previous corresponding period, adding that it was above the statutory tax rate due to certain expenses which were non-deductible.
Quarterly revenue, however, expanded 24% to RM172.78 million from RM139.28 million due to increase in logistics and warehousing and property development revenue.
Vertice Bhd has bagged a RM59.13 million contract for the provision of engineering, procurement, construction and commissioning for an interconnecting road in Pengerang, Kota Tinggi, Johor.
The 14-month sub-contract will start today (Feb 26) and be completed by April 8, 2019.
Dagang NeXchange Bhd (DNeX) has won a two-year contract to provide directional drilling equipment to Baker Hughes (M) Sdn Bhd (BHGE) in Asia Pacific and Middle East.
“Estimated at about RM9 million per year, the contract will begin on March 1, 2018 for two years and with an extension option of up to two years,” it added.
Manulife Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) fell 76.4% to RM6.64 million or 3.28 sen a share, from RM28.1 million or 13.88 sen a share a year earlier, despite a 76.7% jump in revenue to RM401.5 million from RM227.3 million in 4QFY16.
It said its investment holding segment, life insurance business and asset management services all saw weaker performance in 4QFY17.
For FY17, the group’s net profit fell 39.7% to RM28 million, from RM46.4 million in FY16, despite revenue increasing 30.4% to RM1.35 billion, from RM1.04 billion.
KPJ Healthcare Bhd’s net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) grew by 18% to RM61.32 million y-o-y compared with RM52 million last year on higher revenue from Malaysian operations. Revenue grew 13% to RM833.73 million from RM736.01 million a year ago.
The healthcare group declared a single interim dividend of 0.5 sen per share for the financial year ending Dec 31, 2018, which will be payable on April 20.
Serba Dinamik Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) contracted by 16.6% to RM80.5 million from RM96.6 million last year due to one-off additional tax liabilities including penalty.
Its revenue increased by 8.97% y-o-y to RM797.4 million in 4QFY17 from RM731.8 million.
It declared a fourth interim single-tier tax-exempt dividend of 1.6 sen per share in respect of financial year ended Dec 31, 2017 (FY17), payable on March 30.
JAKS Resources Bhd’s subsidiary has obtained an interim stay, restraining two banks from releasing guarantee proceeds totalling RM50 million to Star Media Group Bhd.
JAKS said the stay order, granted to 51%-owned subsidiary JAKS Island Circle Sdn Bhd (JIC), would last until the High Court hears the inter-parte injunctions — which will see both sides presenting their arguments — on March 7.
Sunsuria Bhd saw its net profit for the first quarter of its current financial year (1QFY18) soar 96% to RM20.84 million, from RM10.63 million a year ago, as revenue rose 73.69% to RM110.82 million, from RM63.8 million.
Its positive results for the quarter ended Dec 31, 2017 was due to two new projects, namely the Bell Suites SOHO and Monet Lily double-storey terrace.
Additional sales and work done from Forum 1, Suria Residence, Bell Avenue, Jasper Square and The Olive developments also boosted the group’s performance, Sunsuria said.