KUALA LUMPUR (May 27): Based on corporate news flows and announcements, stocks in focus on Tuesday (May 28) may include: GD Express Bhd (GDex), Hibiscus Petroleum Bhd, Malakoff Corp Bhd, Utusan Melayu (M) Bhd, Deleum Bhd, IHH Healthcare Bhd, Press Metal Aluminium Holdings Bhd, MGB Bhd, KNM Group Bhd and Nova Pharma Group Bhd.
GD Express Bhd's net profit more than doubled to RM5.43 million in the third quarter ended March 31,2019 (3QFY19) from RM2.62 million recorded a year ago, following an absence of income tax expense. Revenue grew only 6.22% to RM77.97 million from RM73.4 million.
For the nine months ended March 31, 2019 (9MFY19), net profit rose 32.03% to RM22.58 million from RM17.11 million. Revenue climbed 7.62% to RM235.29 million from 218.63 million, on the back of higher contributions from its e-commerce business despite a slower pace of parcel volume growth.
Hibiscus Petroleum Bhd's 3QFY19 net profit fell 33.62% to RM55.18 million from RM83.14 million last year, on lower margins and losses from some of its segments, despite quarterly revenue tripling to RM226.12 million from RM75.42 million.
For 9MFY19, the group’s profit increased by 95.58% to RM205.29 million from RM104.96 million seen a year prior with revenue for the period increasing 258.21% to RM751.23 million from RM209.72 million last year, following additional contributions from its North Sabah Asset and higher production from its UK Anasuria Cluster.
Meanwhile Malakoff Corp Bhd's first quarter ended March 31(1QFY19) net profit grew 26.6% to RM67 million from RM52.91 million a year ago, due to higher payments from electricity generation for its Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) coal power plants.
Quarterly revenue rose by 25% to RM2.007 billion, from RM1.604 billion seen last year due to higher applicable coal price which saw higher payments for its coal power plants.
Utusan Melayu (M) Bhd’s 1QFY19 net loss widened to RM8.05 million from RM5.85 million a year ago, with quarterly revenue declining 51.8% to RM26.75 million from RM55.51 million seen a year ago due to an RM28.76 million reduction in publishing distribution and advertising.
Deleum Bhd’s 1QFY19 net profit doubled to RM2.81 million from RM1.4 million registered a year ago due to a lower tax expense. Meanwhile, revenue increased by 17.5% to RM127.5 million from RM108.51 million as a result of higher contributions and demand from its power and machinery segment, oil field services segment and integrated corrosion solution segment. However, it noted that net operating profit declined 69.4% to RM1.52 million from RM4.64 million seen a year ago due to downward pressure on margins in all three business segments.
IHH Healthcare Bhd managing director (MD) and chief executive officer (CEO) Dr Tan See Leng, 54, will leave the group upon the expiration of his contract on December 31, 2019. Current Columbia Asia Group CEO Dr Kelvin Loh Chi-Keon, 45, will replace him on Jan 1,2020. Both Tan and Loh are Singapore nationals.
Press Metal Aluminium Holdings Bhd’s 1QFY19 declined 23.51% to RM115.11 million, from RM150.48 million due to weakening metal price and high raw material costs. Quarterly revenue inched 2.16% higher to RM2.17 billion from RM2.13 billion last year despite lower selling prices, and takes into account the consolidation of results by Press Aluminium Rods Sdn Bhd after the completion of its acquisition in 2QFY18.
The group has declared the first interim single tier dividend of RM50.2 million or 1.25 sen a share, down from 1.5 sen in 1QFY18, with an ex-date of June 14.
MGB Bhd’s 1QFY19 net profit declined 70% to RM3.11 million from RM10.19 million seen a year ago, despite revenue rising 20.4% to RM203.6 million from RM169.07 million seen previously, due to narrowing margins from its ongoing construction projects, a net loss incurred by its subsidiary company and higher finance and depreciation costs.
Separately, the group was awarded an RM134.7 million contract, commencing in October 2020, to develop 674 double-storey houses in Dengkil, Selangor by Blee & W Architects Sdn Bhd on behalf of Seloka Sinaran Sdn Bhd, in which LBS Bina Group Bhd holds a 59.868% stake.
KNM Group Bhd has won three contracts in Vietnam, Belgium and Johor worth RM97.72 million in total.
Its contract in Vietnam is to supply shop-assembled large columns for a petrochemical complex for US$12.77 million (around RM53.44 million), while its contract in Belgium, worth €5.46 million (around RM25.59 million), is a technical goods and works purchase contract for the engineering, procurement, manufacturing, inspection, testing and delivery of Oleflex reactors. Its Johor job is for the supply of reactor effluent air condensers at the Petronas RAPID Project in Pengerang for US$4.47 million (around RM18.68 million).
Nova Pharma Solutions Bhd (NPS) has entered a joint venture cum shareholders agreement (JVSA) with Acara Juara Sdn Bhd (AJ) to jointly invest in, establish, and operate a total engineering solutions business, under a special purpose vehicle (SPV) tentatively called Nova HiTech Solutions Sdn Bhd. NPS will control 51% of the SPV with AJ controlling the balance — with parties making an RM100,000 capital contribution.