KUALA LUMPUR (June 29): Based on corporate announcements and news flow today, stocks in focus on Tuesday (June 30) may include: Shangri-La Hotels (Malaysia) Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak), Kim Loong Resources Bhd, Panasonic Manufacturing Malaysia Bhd, Oriental Holdings Bhd, Sunway Real Estate Investment Trust (Sunway REIT), Ireka Corp Bhd, Kumpulan Powernet Bhd, Pecca Group Bhd, Sapura Energy Bhd, QL Resources Bhd, MyEG Services Bhd (MyEG) and AMMB Holdings Bhd (AmBank).
Shangri-La Hotels (Malaysia) Bhd’s 1QFY20 net profit fell 90.8% to RM2.03 million from RM22.12 million a year earlier, as it was significantly impacted by worse operating results for its hotel businesses amid extremely challenging conditions due to the unprecedented disruption caused by the Covid-19 pandemic. Quarterly revenue was 36% lower at RM88.47 million from RM137.36 million previously.
A drop in traffic volume resulted in Lingkaran Trans Kota Holdings Bhd’s (Litrak)’s net profit slipping 7.75% to RM54.55 million for 4QFY20, from RM59.13 million a year earlier. Revenue dropped to RM111.49 million from RM126.45 million previously. For FY20 as a whole, the group posted a higher net profit of RM261.92 million, up 10.93% from RM236.11 million in FY19. Annual revenue, however, dropped to RM503.844 million from RM516.03 million previously.
Plantation firm Kim Loong Resources Bhd's net profit rose 57.9% to RM22.9 million for 1QFY21, from RM14.51 million a year earlier, on higher fresh fruit bunch (FFB) and crude palm oil prices by 26% and 25% respectively. Revenue climbed to RM201.36 million from RM168.97 million previously. Kim Loong expects to conclude acquisitions of oil palm estates in Sabah by 3Q, which will boost the group’s FFB production by 10%.
Panasonic Manufacturing Malaysia Bhd’s net profit surged 34.92% to RM30.3 million for 4QFY19, from RM22.46 million for 4QFY18. Revenue slipped 9.3% to RM204.65 million from RM225.64 million a year earlier, dragged by the Movement Control Order (MCO). For FY19 as a whole, the group said its net profit grew 10.63% to RM117 million from RM105.75 million in FY18, while revenue dropped 6.73% to RM1.1 billion from RM1.13 billion.
Oriental Holdings Bhd slipped into the red in 1QFY20, mainly due to a foreign exchange loss on yen-denominated borrowings by the plantation segment. It posted a net loss of RM396.09 million, compared to a net profit of RM80.62 million a year earlier. Revenue for the quarter dropped 31.2% to RM956.38 million, from RM1.39 billion previously, mainly attributed to a lower contribution from the automotive segment by RM409.5 million.
Sunway Real Estate Investment Trust (Sunway REIT) is buying The Pinnacle Sunway in Sunway City for RM450 million. This marks the 10th property addition to Sunway REIT’s asset portfolio, said its manager Sunway REIT Management Sdn Bhd. It added that the REIT’s property value will rise to RM8.5 billion upon completion of the acquisition.
Ireka Corp Bhd’s construction arm, Ireka Engineering & Construction Sdn Bhd, has bagged a RM163.9 million contract to build a 10-storey hospital extension block in Johor. The contract was awarded by Regency Specialist Hospital Sdn Bhd. The project will commence on July 1 and is expected to be completed in 18 months.
Kumpulan Powernet Bhd has accepted a letter of award to undertake civil works for two mini hydro power plants in Laos for US$40.7 million (RM174.5 million). The two power plants are Nam Taep 1 and Nam Taep 2, each with 3 x 5 MW generation capacity and are located in Houaphan province.
Pecca Group Bhd is venturing into producing personal protective equipment (PPE) — such as face masks, face shields and PPE garments — to the commercial and medical sectors. The car leather upholstery maker said its unit, Pecca Leather Sdn Bhd, will repurpose its existing production lines and leverage its in-house talent of craftsmen and facilities to execute the PPE business. The group has allocated a capital expenditure of RM2.2 million for the purchase of machinery and set-up of cleanroom facilities for production of face masks.
Sapura Energy Bhd returned to the black in 1QFY21 with a net profit of RM14.21 million compared to a net loss of RM109.1 million a year earlier. Revenue, however, fell 16.89% to RM1.36 billion, from RM1.63 billion in 1QFY20. The group’s orderbook stood at RM14 billion, comprising RM800 million in cumulative new job wins to-date.
Poultry farmer QL Resources Bhd’s net profit for 4QFY20 was somewhat flattish at RM42.97 million compared to RM43.26 million a year ago. Revenue, however, grew 8% to RM979.42 million from RM903.77 million previously. For the full FY20, the group’s net profit grew 10% to RM239.32 million from RM216.78 million last year, while revenue rose 15% to RM4.15 billion from RM3.62 billion. The group plans to issue up to 811.22 million bonus shares, one each for every two QL shares held.
MyEG Services Bhd (MyEG) raked in a net profit of RM58.84 million on revenue of RM121.74 million for 1QFY20. There was no comparative data for the period as the firm changed its financial year from Sept 30 to Dec 31. This was contributed by, among others, concession-related services, such as Immigration Department and Road Transport Department related and ancillary services.
AMMB Holdings Bhd (AmBank Group) saw its net profit fall 46.2% to RM247.54 million in 4QFY20, from RM459.67 million a year ago, due to a RM194.85 million allowance for impairment on loans, advances and financing, versus a RM271.56 million writeback of allowance for impairment on loans, advances and financing in 4QFY19. Revenue was also down 5.1% to RM2.21 billion, from RM2.33 billion in 4QFY19. For the full year of FY20, net profit was 10.9% lower at RM1.34 billion compared with RM1.51 billion in FY19, while revenue grew 2.24% to RM9.32 billion from RM9.12 billion.