KUALA LUMPUR (Aug 27): Based on corporate announcements and news flow today, some of the companies that may be in focus tomorrow (Aug 28) are: Malayan Banking Bhd, Genting Bhd, Genting Malaysia Bhd, Hap Seng Consolidated Bhd, IHH Healthcare Bhd, Axiata Group Bhd, Telekom Malaysia Bhd (TM), Rubberex Corp (M) Bhd, PPB Group Bhd, Boustead Holdings Bhd, Media Prima Bhd, Star Media Group Bhd, My EG Services Bhd, KPJ Healthcare Bhd, Ekovest Bhd, Aeon Co (M) Bhd, UMW Holdings Bhd, Sime Darby Property Bhd, Gamuda Bhd and Kumpulan Powernet Bhd
Malayan Banking Bhd (Maybank) is expecting net interest margin (NIM) to compress by a wider 20 basis points (bps) for the full year ending Dec 31, 2020 (FY20), from its earlier forecast of 5bps for the year.
The NIM compression guidance revision comes after the group incorporated the latest rate cuts as well as the net modification loss impact of RM314 million from the loan payment moratorium, said group president and chief executive officer Datuk Abdul Farid Alias.
Meanwhile, it reported that net profit for the second quarter ended June 30, 2020 (2QFY20) fell 51.55% to RM941.73 million from RM1.94 billion a year earlier as net interest income and Islamic banking income dropped as well due to significantly higher allowance for impaired loans amid a COVID-19 pandemic-driven weaker economic outlook. Its revenue declined to RM11.79 billion in 2QFY20 from RM13.05 billion.
Genting Bhd’s net loss ballooned almost six times to RM786.06 million for the second quarter ended June 30, 2020 (2QFY20) compared with RM132.3 million in the preceding quarter as the COVID-19 pandemic dealt a big blow to its leisure and hospitality business. The quarter revenue of the diversified group, which owns two listed casino operators, was down 73% to RM1.11 billion from RM4.11 billion for 1QFY20. Despite the steep losses, it has declared an interim single-tier dividend of 6.5 sen.
Meanwhile, Genting Malaysia Bhd (GENM) also declared an interim dividend of six sen per share despite the losses posted in 2QFY20.
It posted a net loss of RM900.42 million for the second quarter ended June 30, 2020 (2QFY20). This is more than double the RM417.96 million net loss it had reported for the preceding quarter. In contrast, the group had recorded a net profit of RM416.48 million for last year’s second quarter (2QFY19).
GENM saw revenue of RM114.91 million for 2QFY20, down 94.12% compared with RM1.96 billion in 1QFY20, and down 95.58% compared with RM2.6 billion in 2QFY19.
Hap Seng Consolidated Bhd’s second quarter net profit fell 66% to RM44.08 million or 1.77 sen per share — its weakest quarterly performance since 4QFY09 — from RM129.79 million or 5.21 sen per share a year earlier, as all of its business segments except for plantation were affected by the Movement Control Order. Revenue for the second quarter ended June 30 (2QFY20) fell 43.32% to RM989.58 million, from RM1.75 billion in 2QFY19.
IHH Healthcare Bhd has narrowed its losses to RM120.64 million or 1.64 sen per share in the second quarter ended June 30, 2020 (2QFY20), from RM319.79 million or 3.9 sen per share in the preceding quarter, on lower tax and in the absence of impairment on goodwill of its Global Hospitals arm in India. Revenue fell 27.85% to RM2.57 billion in 2QFY20 from RM3.56 billion in 1QFY20, as all businesses declined except for PLifeREIT.
Axiata Group Bhd’s net profit for the second quarter ended June 30 (2QYF20) fell 63.72% to RM80.02 million or 0.9 sen per share, from RM220.56 million or 2.4 sen per share a year earlier, dragged by weaker performance in Malaysia and Nepal and on a smaller one-off gain on disposal. Amid the weak quarter, it declared a tax-exempt dividend of two sen per share, down from five sen in 2QFY19.
Quarterly revenue slid 5.87% to RM5.79 billion, from RM6.15 billion, as only the tower business and the Indonesian segment provided higher contributions, while contributions from other markets fell.
Telekom Malaysia Bhd (TM) reported today that second quarter net profit jumped 140.63% to RM274.75 million from RM114.18 million a year earlier on lower operating and net finance cost as the company contended with the impact of the Movement Control Order (MCO) to curb the spread of the COVID-19 pandemic. Revenue, however, fell to RM2.59 billion in the second quarter ended June 30, 2020 (2QFY20) from RM2.77 billion a year ago following TM's Internet service Streamyx's price adjustments and amid restricted economic activities during the MCO.
Yet another glove maker, Rubberex Corp (M) Bhd, posted an all-time-high quarterly net profit of RM22.96 million or earnings per share of 8.96 sen for its second quarter ended June 30, 2020 (2QFY20) almost 10 times higher compared from the RM2.4 million net profit or 0.95 sen posted in 2QFY19, as the COVID-19 pandemic boosted demand for the company’s products. Quarterly revenue grew 58.34% to RM88.1 million from RM55.64 million in the corresponding quarter last year.
To add to the good news, the glove maker announced a two-for-one bonus issue entailing the issuance of 554.85 million new shares, which will swell its issued share capital to 832.28 million, although the entitlement date has not been set yet.
PPB Group Bhd’s net profit more than doubled in the second quarter ended June 30, 2020 (2QFY20) to RM332.73 million from RM159.98 million a year earlier, boosted by performance of its 18% associate. Overall, quarterly revenue fell 17.3% to RM953.34 million, from RM1.15 billion in 2QFY19. It declared an interim dividend of eight sen per share — unchanged from last year — to be paid on Sept 29.
Boustead Holdings Bhd booked a net loss of RM73.7 million or 3.64 sen per share for the second quarter ended June 30, 2020 (2QFY20), as COVID-19 brought more pain than gain for its business segments. The net loss was flattish when compared with the RM73.1 million net loss reported in 1QFY20, while revenue fell 33.69% to RM1.5 billion from RM2.26 billion.
Media Prima Bhd’s net loss narrowed to RM20.11 million in the second quarter of the financial year ended June 30,2020 (2QFY20) against the immediate preceding quarter at RM29.54 million, on the back of lower operating expenses and increased home shopping, but was dragged by the one-off termination benefits charge of RM11.3 million. This is the group’s sixth quarterly loss-making quarter. While revenue for the quarter inched down 0.91% quarter-on-quarter to RM236.28 million from RM238.44 million.
Star Media Group Bhd's net loss widened to RM26.95 million or 3.7 sen per share for its second quarter ended June 30, 2020 (2QFY20) from RM3.98 million or 0.54 sen per share in the preceding quarter. Quarterly revenue more than halved to RM31.51 million from RM65.76 million, mainly due to the MCO instituted to curb the COVID-19 pandemic.
My EG Services Bhd reported a net profit of RM63.06 million in the second quarter ended June 30, 2020 (2QFY20) on revenue of RM124.34 million.
On a quarter-to-quarter basis, its net profit was 7.16% higher against RM58.84 million in 1QFY20 while revenue also increased 2.13% compared with RM121.74 million. It attributed the better profitability to introduction of new services such as COVID-19 health screening and online grocery platform “Nak Beli”, increase in transaction volume as well as cost reduction in administrative expenses in the 2QFY20.
KPJ Healthcare Bhd saw net profit drop 67% to RM12.66 million in the second quarter ended June 30, 2020 (2QFY20) from RM38.53 million in the preceding quarter due to the full impact of the COVID-19 pandemic disruption on its business. Revenue also dipped 29% quarter-on-quarter to RM626.62 million in 2QFY20, as it received fewer patients during the MCO period.
Ekovest Bhd suffered a loss for the fourth quarter ended June 30, 2020 (4QFY20), as the COVID-19 pandemic and resulting MCO measures took a heavy toll on its profitability. The property and construction group recorded a net loss of RM53.82 million for the quarter compared to a net profit of RM8.43 million for the preceding quarter (3QFY20) and a net profit of RM23.29 million a year earlier (4QFY19). Revenue stood at RM192.3 million, down 44.24% from RM344.88 million for 3QFY20 and lower by 43.19% from RM338.5 million for 4QFY19.
Aeon Co (M) Bhd swung into a net loss of RM9.56 million or 0.68 sen per share for the second quarter ended June 30, 2020 (2QFY20), as business operations were adversely affected by the COVID-19 pandemic and lockdown restrictions.
The department store and retailer had recorded a net profit of RM7.47 million and earnings per share (EPS) of 0.53 sen in the immediate preceding quarter (1QFY19). Aeon said its quarterly revenue shrank 19.9% to RM954.32 million, from RM1.19 billion for 1QFY20
UMW Holdings Bhd posted a net loss of RM78.44 million for the second quarter ended June 30 (2QFY20), its first loss since 4QFY17, due to the MCO which severely impacted sales.
It had achieved a net profit of RM57.19 million in the corresponding period last year, and a net profit of RM44.32 million in the preceding quarter. Meanwhile, revenue dropped 48.52% to RM1.53 billion from RM2.97 billion in 2QFY19.
Sime Darby Property Bhd is targeting to achieve RM1.4 billion sales for its financial year ending Dec 31, 2020 (FY20) and it will be launching another RM1 billion gross development value (GDV) worth of projects in the second half of the year, comprising 601 units valued at RM509.8 million in the third quarter and another 1,150 units in the fourth quarter, said its group managing director Datuk Azmir Merican.
Looking towards 2021, he indicated that the group will be looking at diversifying its development income streams, with the group looking towards industrial and logistics developments as a new engine of growth.
A joint venture between Gamuda Australia and Laing O’Rourke has been shortlisted for the first stages of the A$20 billion (RM60.48 billion) Sydney Metro West Project, according to Gamuda Bhd.
According to Gamuda, early works on the Sydney Metro West project are expected to begin by year-end, pending a planning approval, with the target of having tunnel boring machines in the ground by the fourth quarter of 2022.
Kumpulan Powernet Bhd has secured a contract worth US46.2 million (RM192.68 million) for a hydropower project at Mahakulung VDC, Nepal, from Apex Makalu Hydro Power Pvt Ltd.