KUALA LUMPUR (Aug 25): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Aug 26) include AirAsia Group Bhd, Velesto Energy Bhd, Tan Chong Motor Holdings Bhd, Sunway Bhd, Pos Malaysia Bhd, Affin Bank Bhd, Nestle (M) Bhd, Syarikat Takaful Malaysia, Keluarga Bhd Leong Hup International Bhd, Kossan Rubber Industries Bhd, IOI Corp Bhd, Boustead Plantations Bhd, Kenanga Investment Bank Bhd, Petronas Dagangan Bhd (PetDag), GD Express Carrier Bhd (GDex), TCS Group Holdings Bhd, Sime Darby Property Bhd, Tex Cycle Technology (M) Bhd and Lagenda Properties Bhd.
Following its record quarterly net loss of RM803.55 million in the first quarter ended March 31, 2020 (1QFY20), AirAsia Group Bhd sank further into the red with a net loss of RM992.89 million in its second quarter ended June 30 (2QFY20), as the group faced the full brunt of the pandemic outbreak.This came as the group's revenue shrank 95% quarter-on-quarter to RM118.96 million from RM2.31 billion. Some 42% of the group's revenue for the quarter came from its cargo and logistics operations.
In the previous year’s corresponding quarter (2QFY19), AirAsia posted a net profit of RM17.34 million on a revenue of RM2.92 billion.
Velesto Energy Bhd sank into losses again with a net loss of RM15.25 million for the second quarter ended June 30, 2020 (2QFY20), after it had been profitable for four consecutive quarters. In contrast, the group reported a net profit of RM11.91 million a year earlier.
It attributed its quarterly loss to an additional RM10.9 million expenses in relation to the Covid-19 pandemic and the lower contributions by its drilling and oilfield services segments.
Revenue fell 10.25% to RM140.95 million versus RM157.05 million a year ago, due to lower performances by both these segments as well.
The oil rig operator expects its performance this year to be weaker than 2019 amid continuing uncertaintes on the global economy and the demand for oil and gas.
Tan Chong Motor Holdings Bhd, the franchise holder of Nissan cars in Malaysia, reported today a second quarter net loss at RM79.36 million, versus a net profit of RM19.43 million a year earlier, as the Covid-19 pandemic significantly affected the group's automotive division's performance. Revenue fell to RM512.89 from RM1.07 billion.
Sunway Bhd has reported a net loss of RM6.71 million for the second quarter ended June 30, 2020 (2QFY20), compared with a net profit of RM78.29 million in the preceding quarter, as most of its business segments had to cease operations during the Covid-19 lockdown.
In contrast, the group had posted a net profit of RM246.49 million for the previous year’s second quarter.
Revenue stood at RM556.64 million, down 42.7% quarter-on-quarter from RM971.44 million. On a year-on-year basis, the revenue was down 48.3% from RM1.08 billion.
Pos Malaysia Bhd's net loss for the second quarter ended June 30, 2020 (2QFY20) narrowed to RM19.02 million — its eighth consecutive quarter of losses — from RM49.22 million in the preceding quarter, due to higher revenue. Revenue grew 8.51% quarter-on-quarter to RM606.08 million, from RM558.53 million, which Pos Malaysia attributed mainly to the postal segment, especially the courier business, as well as higher postal tariffs.
Affin Bank Bhd's net profit declined to RM67.4 million for the second quarter ended June 30, 2020 (2QFY20), down 45.46% from RM123.57 million for 1QFY20 and down 56.8% from RM156.03 million a year ago. The bank attributed the lower earnings to higher overhead expenses of RM50.7 million, recognition of modification losses on loan financing moratorium accounts of RM79.7 million, lower Islamic banking income of RM31.8 million, lower gain on sales of financial instruments of RM20.3 million and lower net interest income of RM16.2 million.
Quarterly revenue totalled RM512.96 million, down 18.63% compared with RM630.38 million in the first quarter. It was, however, 3.02% higher than the RM497.93 million quarterly revenue reported a year earlier.
Nestle (M) Bhd’s second quarter net profit slipped as the food and beverage manufacturer contended with Malaysia's Covid-19-driven movement control order, which led to restrictions on the company's out-of-home business channels.
Net profit slipped to RM105.53 million from RM156.89 million a year earlier, while revenue fell to RM1.22 billion from RM1.34 billion. Despite the lower net profit, Nestle declared a tax-exempt dividend of 70 sen a share.
Syarikat Takaful Malaysia Keluarga Bhd's net profit fell 7.24% year-on-year to RM75.09 million for the second quarter (2QFY20), from RM80.95 million last year, mainly due to lower sales generated by family takaful business. Quarterly revenue was also 23.37% lower at RM515.73 million, from RM672.98 million in 2QFY19.
Leong Hup International Bhd’s net profit grew marginally by 1.13% to RM16.27 million or 0.45 sen per share for the second quarter ended June 30, 2020 (2QFY20), compared with RM16.09 million or 0.46 sen per share in the previous corresponding quarter. Quarterly revenue fell 4.16% to RM1.43 billion, from RM1.48 billion previously.
The integrated poultry producer, however, cut its dividend. It declared an interim single tier dividend of 0.55 sen per share amounting to RM20.075 million, payable on Sept 30, 2020. This is 66% lower, compared with 1.6 sen per share a year ago.
Kossan Rubber Industries Bhd has joined its glovemaker peers to post its highest ever quarterly profit of RM131.06 million for the second quarter ended June 30 (2QFY20), soaring 134.52% from RM55.88 million a year ago on higher sales and average selling prices, triggered by demand spike due to Covid-19. Quarterly revenue, meanwhile, rose 27.5% to RM701.68 million, from RM550.53 million a year ago.
To cheer up its shareholders further, the group announced a one-for-one bonus issue entailing the issuance of 1.28 billion shares, which will enlarge its issued share capital to 2.56 billion shares.
IOI Corp Bhd's net profit for the fourth financial quarter ended June 30, 2020 (4QFY20) leapt to RM238.3 million compared with just RM100,000 for 3QFY20, thanks to higher crude palm oil and palm kernel prices realised in the quarter. The quarterly net profit was five times higher from RM46.6 million a year ago.
Quarterly revenue came in at RM2.04 billion, just slightly higher than RM2.03 billion recorded in 3QFY20, and 17% higher from a year ago at RM1.74 billion. The group declared a second interim dividend of four sen per share.
Boustead Plantations Bhd booked a net profit of RM7.08 million or 0.32 sen per share in the quarter ended June 30 (2QFY20), as the group returned to black at the operating level, thanks to higher production and selling prices of its palm products, as well as lower tax incurred.
The group recorded an operating profit of RM19.35 million in its latest quarter — as opposed to an operating loss of RM22.09 million in 2QFY19. The latest quarterly performance was also better than the January-March period. Comparatively, operating profit rose 12% from RM17.28 million in 1QFY20.
Its revenue saw a 34.78% year-on-year increase to RM167.06 million from RM123.95 million, thanks again to the improved prices of palm products.
Kenanga Investment Bank Bhd posted a net profit of RM20.47 million for the second quarter ended June 30, 2020 (2QFY20), surging 265% from RM5.6 million in the same quarter a year earlier (2QFY19), after retail trading swelled during the quarter. Revenue for the quarter jumped 24.1% to RM209.74 million, from RM169.05 million in the year earlier.
Petronas Dagangan Bhd (PetDag) managed to post a net profit of RM3.51 million for the second quarter ended June 30, 2020, after suffering a net loss of RM29.42 million in the preceding quarter. This was despite revenue falling 55.27% to RM2.91 billion from RM6.55 billion in 1QFY20. The group attributed the profit to the improved demand during the Conditional Movement Control Order (CMCO) period, with its June sales number surpassing the April figure by over 50%.
The net profit was, however, lower by a significant 97.97% when compared with the RM172.75 million net profit reported for the previous financial year's 2Q. Revenue dropped by 61.46% from RM7.61 billion a year ago. The group has declared an interim dividend of five sen per share, payable on Sept 24. This is 64% lower compared with the 14 sen per share declared a year ago.
GD Express Carrier Bhd (GDex) saw its revenue increase 15.7% year-on-year (y-o-y) to RM363 million for the financial year ended June 30, 2020 (FY20). It attributed the higher revenue to increased demand for courier services during the movement restriction periods, as well as contribution from its newly-acquired Vietnam subsidiary, Noi Bai Express and Trading Joint Stock Company (Netco).
However, the courier service provider saw its net profit drop 42% y-o-y to RM18.8 million. This was due to the recognition of gain on redemption of convertible bonds in the last financial year, as well as the impact of Malaysian Financial Reporting Standard 16 (MFRS 16) leases assessment and adjustments.
TCS Group Holdings Bhd has secured a contract worth RM68.4 million from a wholly-owned unit of Sime Darby Property Bhd for the construction of 218 units of houses in Elmina Green Three in Sungai Buloh. The contract is for the construction of the double-storey link houses, together with a power sub-station with other infrastructure works.
Tex Cycle Technology (M) Bhd said its subsidiary has signed the renewable energy power purchase agreement with Tenaga Nasional Bhd for a feed-in-tariff (FiT) concession period of 21 years. This is in relation to electricity generated from 4MW biomass at its renewable energy power plant in Gurun, Kedah.
Lagenda Properties Bhd, formerly known as DBE Gurney Resources Bhd, is buying five parcels of leasehold agriculture land in Tapah, Perak, that it plans to develop into an affordable housing township.