KUALA LUMPUR (Aug 15): Based on corporate announcements and newsflow today, stocks in focus tomorrow (Friday, Aug 16) may include: Genting Malaysia Bhd (GenM), Serba Dinamik Holdings Bhd, Sarawak Consolidated Industries Bhd, Carlsberg Brewery Malaysia Bhd, Dialog Group Bhd, IOI Corp Bhd, CIMB Holdings Bhd, Damansara Realty Bhd, HeiTech Padu Bhd and Eco World International Bhd
In response to a query from Bursa Malaysia, Genting Malaysia Bhd (GenM) has defended its RM538 million related party transaction in Empire Resorts Inc as a “worthwhile investment”.
It highlighted that Empire’s casino Resort World Catskills (RWC) is located in a prime location and is one of the newest and highest quality gaming assets in northeast US, as well as having access to the all-suite Kartrite Resort.
The group added that it was in a unique position to take advantage of synergies between its existing Resorts World New York (RWNY) casino and RWC, providing the two casinos economies of scale, as well as leveraging on their customer bases to form a combined marketing approach that is expected to maximise gaming revenue and improve margins.
Moreover, RWC is in prime position to take advantage of New York’s emerging Sports Wagering market and develop a video lottery facility in Orange County, New York, which is near premier outlet shopping mall Woodbury Commons, it said.
Serba Dinamik Holdings Bhd founder and managing director Datuk Mohd Abdul Karim Abdullah has acquired another 20.31% block of shares in Sarawak Consolidated Industries Bhd (SCIB), raising the stake he holds in the company to 42.82%, and triggering a mandatory general takeover offer for the remainder shares he does not own in SCIB at RM1.10 apiece.
The offer represents a 2.8% premium against SCIB’s share price of RM1.07 before it was suspended at 2.52 pm today. Abdul Karim intends to maintain SCIB’s listing status.
Carlsberg Brewery Malaysia Bhd's second quarter ended June 30, 2019 (2QFY19) net profit was 2.1% higher at RM65.26 million or 21.34 sen per share compared with RM63.91 million or 20.9 sen per share a year ago, which the group attributes to effective execution of consumer promotions and the "continuous premiumisation of its portfolio in both Malaysia and Singapore”. Revenue climbed 15.7% year-on-year (y-o-y) to RM480.52 million from RM415.45 million.
Cumulative net profit for the first half of the year (1HFY19) rose 5.6% to RM152.86 million from RM144.73 million, while revenue grew 18.3% to RM1.14 billion from RM963.92 million.
Dialog Group Bhd posted a 22.5% y-o-y rise in net profit to RM141 million in the fourth quarter ended June 30 from RM115 million, on the back of an improvement in its Malaysian operations, particularly engineering, construction and plant maintenance services. Revenue, however, declined 26% to RM449.34 million from RM607.13 million.
It declared a final dividend of 2.3 sen a share, taking total dividend payout to 3.8 sen per share or RM214.57 million for the financial year ended June 30, 2019 (FY19). FY19 net profit rose 5% to RM535.84 million from RM510.37 million last year, despite revenue declining nearly a fourth to RM2.39 billion from RM3.11 billion.
IOI Corp Bhd’s net profit for the fourth quarter ended June 30, 2019 (4QFY19) rose 30% y-o-y to RM46.6 million from RM35.8 million, despite a slight dip in revenue, with earnings mainly lifted by lower net foreign currency translation losses on its borrowings and deposits. Revenue fell 3.5% to RM1.74 billion from RM1.8 billion.
The group's board proposed a final single tier dividend of 4.5 sen per ordinary share in respect of FY19, to be approved by shareholders. If approved, its cumulative dividend payout for FY19 would be 8 sen compared with 20.5 sen in FY18.
Full-year net profit fell 79% to RM631.7 million, from RM3.06 billion last year, with revenue dropping to RM7.39 billion, from RM7.42 billion — with the group seeing lower operating profit and net foreign currency translation losses.
CIMB Holdings Bhd’s 92.5% subsidiary PT Bank CIMB Niaga Tbk’s net profit rose 11.8% to IDR1.98 trillion (RM580.82 million) in the first held of 2019 (1H19) from IDR 1.78 trillion last year, as net interest income (NII) rose 5.5% to IDR6.32 trillion from IDR5.99 trillion, a 2.2% y-o-y decline in provision expenses.
Damansara Realty Bhd recorded improved second quarter earnings, thanks to lower operating expenses and contribution from its joint venture (JV) development in Central Park, Johor Bahru. It posted a net profit of RM3.66 million in the three months ended June 30, 2019 (2QFY19) compared to a net loss of RM330,000 a year ago, despite revenue slipping 7.14% to RM68.93 million from RM74.23 million.
For the six-month period (6MFY19), net profit increased by four times to RM5.46 million, from RM1.41 million last year, though revenue retreated 3.61% to RM140.22 million from RM145.47 million.
HeiTech Padu Bhd’s 80% unit is looking for up to RM20 million to fund technology developments and marketing activities for its e-government service payment platform MyPay. The platform is looking to onboard 300,000 users in the short term and a million users in the midterm — eventually aiming to garner 30 to 40 government agencies on its system in the longer term.
Eco World International Bhd (EWI) is adding another 1,000 units of build-to-rent (BtR) housing to its portfolio in London. The gross development of the new units are dependent on the location of the land and once it has been finalised. The group is targeting 10,000 BtR units in five years.