KUALA LUMPUR (June 25): Based on corporate announcements and news flow today, stocks in focus on Friday (June 26) may include: Datasonic Group Bhd, Axiata Group Bhd, Scomi Energy Services Bhd, Malaysia Building Society Bhd (MBSB), KUB Malaysia Bhd, Alliance Bank Bhd, Widad Group Bhd, Aeon Credit Service (M) Bhd, DRB-Hicom Bhd, Eco World Development Group Bhd, Sapura Energy Bhd and Anzo Holdings Bhd.
Datasonic Group Bhd reported a 5.6% increase in net profit to RM12.25 million for 4QFY20, against a net profit of RM11.6 million a year earlier, despite posting lower revenue during the quarter.
Due to lower supply of smart cards and passports during the quarter, the company posted a 10.58% decline in revenue to RM50.71 million from RM56.71 million in 4QFY19.
This brings the tech firm's net profit for the full year to RM60.32 million, up 65% from RM36.53 million in FY19 as revenue increased 12.74% to RM247.54 million from RM219.55 million.
Axiata Group Bhd has confirmed that its subsidiary edotco Group Sdn Bhd has been shortlisted to bid for Myanmar telecoms tower player Irrawaddy Green Towers. The group said this is in line with its trajectory for edotco to grow the latter’s current base of some 20,000 towers to 50,000. Besides Myanmar, the group said it is exploring many opportunities in the region, adding that edotco has yet to make inroads into attractive emerging markets in the region such as Thailand and Vietnam.
Scomi Energy Services Bhd chief executive officer Hilmy Zaini Zainal is resigning from the top post effective June 30 due to “personal reasons”, the group said in bourse filing today. He will be succeeded by Scomi Group Bhd’s independent non-executive director Amirul Azhar Baharom, 46, effective July 1, according to a separate filing.
Malaysia Building Society Bhd (MBSB) has reported a net loss of RM73.25 million for 1QFY20, compared to a net profit of RM83.83 million a year earlier, due to higher impairment charges on loans, financing and advances. This was despite revenue rising 2% to RM741.41 million from RM727.22 million previously, on the back of higher fixed income profit and gain from sale of investment securities.
KUB Malaysia Bhd has disposed of its 40% equity interest in KUB-Berjaya Enviro Sdn Bhd (KUBE) to Berjaya Group Bhd for RM80 million. KUBE is principally involved in waste treatment and electricity generation. The stake sale to Berjaya, which owns the remaining 60% of KUBE, was completed today.
The disposal consideration was arrived at on a willing buyer-willing seller basis, KUB said, adding that the proceeds would be used to finance the group’s operating expenses, fund expansion of its core businesses, and explore further business opportunities.
Alliance Bank Malaysia Bhd’s net profit for 4QFY20 fell 12.27% to RM98.06 million from RM111.78 million a year earlier.
The group attributed the lower earnings to a higher allowance for expected credit losses on loans, advances and financing and other financial assets of RM98.29 million versus RM39.92 million in 4QFY19.
This was despite a 7.68% increase in quarterly revenue to RM434.41 million from RM403.44 million in 4QFY19.
For FY20 as a whole, the group’s net profit fell 21.08% to RM424.26 million from RM537.6 million in FY19, while revenue rose 4.14% to RM1.69 billion form RM1.62 billion.
Widad Group Bhd is acquiring the entire stake in Inovatif Mewah Sdn Bhd (IMSB) – the owner of a concession to develop and maintain the UiTM Seremban 3 campus (US3C) – for RM122 million in cash.
The group said its indirect wholly-owned unit, Innovative City Holdings Sdn Bhd, is acquiring IMSB from Menang Development (M) Sdn Bhd, Menang industries (M) Sdn Bhd and Tentu Selesa Sdn Bhd. The acquisition will be funded via internally-generated funds and borrowings.
Aeon Credit Service (M) Bhd reported a net profit of RM26.28 million for 1QFY21, down 69% from RM84.6 million in the year-ago quarter, mainly due to higher allowance for impairment loss, and lower income due to the MCO implemented following the coronavirus outbreak.
Notably, its impairment loss on financing receivables jumped to RM174.37 million from RM93.34 million previously, its stock exchange filing today showed. Quarterly revenue was a marginal 2% higher at RM385.27 million versus RM378.59 million previously.
DRB-Hicom Bhd's profitable run has ended after five quarters with the diversified group slipping into loss in 1QFY20, as both its automotive segment and services segment did not fare well.
Quarterly revenue amounted to RM2.74 billion, which was also its lowest since the quarter ended June 30, 2018 when it posted revenue of RM2.65 billion. Notably, revenue contributions from all three segments were impacted by the MCO. The group said its operational performance for FY20 will be adversely impacted by the ongoing pandemic crisis.
Eco World Development Group Bhd’s (EcoWorld's) net profit fell 48% to RM21.39 million in 2QFY20 compared with RM41.17 million a year earlier as a result of the quieter period during the MCO. The mandatory closure of all its sales galleries and construction sites throughout the MCO period affected earnings, with revenue falling 36.4% to RM345.4 million from RM543.18 million in 2QFY19.
However, the group said it experienced a significant rebound in sales and bookings which exceeded RM1 billion since the Conditional MCO started on May 4.
Sapura Energy Bhd plans to cut about 800 or 20% of its 4,000 full-time employees, in an attempt to adapt to the double whammy of volatile oil prices and the coronavirus-induced economic slowdown.
The latest move came on the heels of multiple other attempts by Sapura Energy to adjust its cost structure recently, including salary cuts and other initiatives out of 136 cost-cutting initiatives identified and assessed by the company.
In a message to staff announcing the downsizing, which it shared with the media, it also hinted at the difficult way forward for the loss-making oil and gas outfit, which has continued to struggle with high gearing and cash-flow squeeze ever since the oil market downturn in 2014-2015.
Anzo Holdings Bhd has inked an agreement to supply up to 60,000 tonnes of copper scrap to CSTME Resources Sdn Bhd for RM23,000 per tonne or a total of RM1.3 billion over a period of 40 months. This, it said, will strengthen the group’s trading business for sustainable earnings in a long period of time and create business opportunities in the international export market.