Stocks In Focus MY (Berjaya Corp, Crescendo, Telekom M’sia) – 31/12/14
BJCORP (3395), CRESNDO (6718), TM (4863)
Starbucks Coffee Boosts Berjaya Corp Profit
Berjaya Corporation’s (BCorp) net profit in 2Q15 surged 642.2 percent to RM153.1 million, mainly boosted by the recognition of gains arising from the re-measurement of the 50 percent equity interest in Berjaya Starbucks Coffee Company (BStarbucks), after the RM279.5 million acquisition of the remaining 50 percent equity interest by Berjaya Food was completed on 18 September 2014.
The company’s revenue for the quarter increased by 45.3 percent from RM1.8 billion to RM2.6 billion, largely due to the marketing of the consumer products and services segment.
The firm’s earnings in 1H15 rose from RM74.1 million in the previous corresponding period by 117.9 percent to RM161.4 million, boosted by BStarbucks. Its turnover in 1H15 increased by 33.4 percent to RM5.1 billion.
Significance: The group is optimistic that its operating performance will be satisfactory in the remaining quarters of FY15. Overall results for FY15 is also expected to be better because of the RM1 billion gain on the disposal of its freehold land in Mukim Sungai Tinggi and Daerah Ulu Selangor as well as the gain on the remeasurement of its remaining 36.7 percent equity interest in Berjaya Auto.
Crescendo 3Q14 Net Profit Falls 62%
Crescendo Corporation’s net profit for 3Q14 fell 61.8 percent to RM18.1 million while revenue for the period fell 6.9 percent to RM72.6 million. Earnings per share fell from 21.43 sen a year ago to 7.94 sen.
The group attributed the decrease in revenue for the period was due to lower sales in industrial properties while profit was down due to the absence of RM23 million fair value gains on investment properties recognised in the same period last year.
For the nine-month period, bottom line fell 6.5 percent to RM85.3 million from RM91.2 million a year ago while revenue fell 18 percent from RM235.7 million to RM193.3 million.
Significance: Moving forward, the firm would continue to focus on the development of industrial, residential and commercial properties with the expectation of challenging market conditions. Better performance is expected in the fourth quarter since it has unrecognised revenue of RM126 million from the total committed property sales as at the end of 3Q14 and new sales committed after that.
TM Wins Submarine Broadband Cable Contract
Telekom Malaysia (TM) has won a contract from the Malaysian Communications and Multimedia Commission to develop and construct a new submarine cable system called Sistem Kabel Rakyat 1Malaysia (SKR1M). It did not reveal the value of the contract in its announcement to Bursa Malaysia.
The proposed submarine cable system, which will link Peninsular Malaysia with Sabah and Sarawak, is part of the Malaysian Government’s initiatives to increase the capacity of high-speed broadband. The new system, spanning approximately 3,500 kilometres, will have an initial capacity of 4 terabit per second. It is expected to start carrying commercial traffic by mid-2017.
The group said that with the system’s state-of-the-art 100 Gigabits per second technology, it is able to provide upgradeable and transmission facilities, thus representing another major step towards enhancing the national broadband connectivity within Peninsular Malaysia, Sabah and Sarawak.
Significance: With this move, TM will be able to expand its service coverage domestically as well as connectivity to meet the industry’s ever-growing demands for IP applications, thus supporting future High Speed Broadband (HSBB) deployment, which will bridge the digital divide.
http://www.sharesinv.com
BJCORP (3395), CRESNDO (6718), TM (4863)
Starbucks Coffee Boosts Berjaya Corp Profit
Berjaya Corporation’s (BCorp) net profit in 2Q15 surged 642.2 percent to RM153.1 million, mainly boosted by the recognition of gains arising from the re-measurement of the 50 percent equity interest in Berjaya Starbucks Coffee Company (BStarbucks), after the RM279.5 million acquisition of the remaining 50 percent equity interest by Berjaya Food was completed on 18 September 2014.
The company’s revenue for the quarter increased by 45.3 percent from RM1.8 billion to RM2.6 billion, largely due to the marketing of the consumer products and services segment.
The firm’s earnings in 1H15 rose from RM74.1 million in the previous corresponding period by 117.9 percent to RM161.4 million, boosted by BStarbucks. Its turnover in 1H15 increased by 33.4 percent to RM5.1 billion.
Significance: The group is optimistic that its operating performance will be satisfactory in the remaining quarters of FY15. Overall results for FY15 is also expected to be better because of the RM1 billion gain on the disposal of its freehold land in Mukim Sungai Tinggi and Daerah Ulu Selangor as well as the gain on the remeasurement of its remaining 36.7 percent equity interest in Berjaya Auto.
Crescendo 3Q14 Net Profit Falls 62%
Crescendo Corporation’s net profit for 3Q14 fell 61.8 percent to RM18.1 million while revenue for the period fell 6.9 percent to RM72.6 million. Earnings per share fell from 21.43 sen a year ago to 7.94 sen.
The group attributed the decrease in revenue for the period was due to lower sales in industrial properties while profit was down due to the absence of RM23 million fair value gains on investment properties recognised in the same period last year.
For the nine-month period, bottom line fell 6.5 percent to RM85.3 million from RM91.2 million a year ago while revenue fell 18 percent from RM235.7 million to RM193.3 million.
Significance: Moving forward, the firm would continue to focus on the development of industrial, residential and commercial properties with the expectation of challenging market conditions. Better performance is expected in the fourth quarter since it has unrecognised revenue of RM126 million from the total committed property sales as at the end of 3Q14 and new sales committed after that.
TM Wins Submarine Broadband Cable Contract
Telekom Malaysia (TM) has won a contract from the Malaysian Communications and Multimedia Commission to develop and construct a new submarine cable system called Sistem Kabel Rakyat 1Malaysia (SKR1M). It did not reveal the value of the contract in its announcement to Bursa Malaysia.
The proposed submarine cable system, which will link Peninsular Malaysia with Sabah and Sarawak, is part of the Malaysian Government’s initiatives to increase the capacity of high-speed broadband. The new system, spanning approximately 3,500 kilometres, will have an initial capacity of 4 terabit per second. It is expected to start carrying commercial traffic by mid-2017.
The group said that with the system’s state-of-the-art 100 Gigabits per second technology, it is able to provide upgradeable and transmission facilities, thus representing another major step towards enhancing the national broadband connectivity within Peninsular Malaysia, Sabah and Sarawak.
Significance: With this move, TM will be able to expand its service coverage domestically as well as connectivity to meet the industry’s ever-growing demands for IP applications, thus supporting future High Speed Broadband (HSBB) deployment, which will bridge the digital divide.
http://www.sharesinv.com
