KUALA LUMPUR (Oct 27): Here is a brief recap of some corporate announcements that made news on Thursday (Oct 27), Hong Leong Bank Bhd, Malayan Banking Bhd, Gamuda Bhd, Digi.com Bhd, Unisem (M) Bhd, Vitrox Corp Bhd, British American Tobacco (M) Bhd, Lotte Chemical Titan Holding Bhd, Pavilion Real Estate Investment Trust, CTOS Digital Bhd and WTK Holdings Bhd.
Permodalan Nasional Bhd's (PNB) attempt to block Hong Leong Bank Bhd's proposed general mandate to issue and allot shares at the bank's AGM failed to come to fruition. PNB, the third largest shareholder of the bank, said it voted against the proposal because the bank did not reveal details of the rationale for the exercise and the utilisation purpose of the funds to be raised. However, PNB still voted in favour of the remaining eight proposals at the AGM on Thursday including the reelection of directors and reappointment of PricewaterhouseCoopers PLT as the bank's auditor.
Malayan Banking Bhd (Maybank) has revised its return on equity target down to 11%-12% by 2025 in its latest midterm strategy, dubbed M25+, from 13%-15% previously, on expectations of higher investment and growing uncertainties in global economy.
Gamuda Bhd has bagged an NT$14.5 billion (RM2.13 billion) contract to construct an underground rail track and commuter station in Taiwan's TaoYuan city, jointly with a local company. Gamuda said it was appointed as the main contractor for the package of the TaoYuan City Underground Railway Project by Taiwan's transportation ministry and state-owned railway company Communications’ Railway Bureau. The job was awarded to a 60:40 joint venture between Gamuda and Asia World Engineering & Construction Co, said Gamuda, adding that the group was expected to receive RM1.28 billion in revenue (60% of the RM2.13 billion) from the contract.
Bursa Malaysia Securities Bhd has approved the listing of and quotation for 3.96 billion new ordinary shares in Digi.com Bhd to be issued pursuant to the proposed merger with Celcom Axiata Bhd. Digi said it must first fully comply with the relevant provisions under the listing requirements pertaining to the implementation of the proposed merger.
Unisem (M) Bhd's net profit for the third quarter ended Sept 30, 2022 (3QFY22) rose 53.3% to RM61.73 million from RM40.27 million a year earlier. Revenue rose to RM439.69 million from RM366.36 million previously. The semiconductor manufacturer attributed this to better average selling prices coupled with the appreciation of the US dollar versus the ringgit and yuan. It declared a second interim dividend of two sen per share to be paid on Nov 23.
Vitrox Corp Bhd’s net profit for 3QFY22 grew 20.4% to RM50.84 million from RM42.21 million a year ago, on the back of the stronger US dollar and favourable product mix. Revenue increased 10.3% to RM185.58 million from RM168.29 million due to continuous strong demand from Automated Board Inspection.
British American Tobacco (M) Bhd's (BAT) net profit for 3QFY22 dropped 4.34% to RM75.25 million from RM78.67 million a year ago, due to non-deductible expenses and one-off prosperity tax introduced this year which is chargeable for income above RM100 million. Quarterly revenue grew 8.78% to RM666.9 million from RM613.02 million, driven by a 4.9% increase in volume as the market continued to return to normalcy following the reopening of the economy. The group declared a third interim dividend of 25 sen per share, payable Nov 18.
Lotte Chemical Titan Holding Bhd (LCT) posted a net loss of RM355.5 million or 15.61 sen per share in 3QFY22, compared to a net profit of RM48.48 million or 2.41 sen per share in 3QFY21, despite higher revenue. LCT attributed the quarterly loss to a decline in margin spread of 26%, write down of inventories to net realisable value of RM71.9 million and the share of loss from associated company, Lotte Chemical USA Corp, compared to share of profit a year ago. Quarterly revenue, however, grew 6.12% to RM2.37 billion from RM2.24 billion mainly due to the increase of average product selling price.
Pavilion Real Estate Investment Trust, which is still in the midst of discussion to buy Pavilion Bukit Jalil mall from Malton Bhd, posted a higher net property income (NPI) of RM90.22 million in 3QFY22. This is 90% higher than the RM47.47 million NPI recorded in 3QFY21, thanks to increased revenue as well as lower property operating expenses. Quarterly revenue grew 26.7% to RM143.62 million compared with RM113.32 million, mainly contributed by higher revenue from rent and income from advertising and marketing events, given that all economic sectors and businesses were allowed to reopen.
CTOS Digital Bhd posted a 95% surge in net profit to RM22.76 million for 3QFY22, up from RM11.67 million a year earlier, driven by higher revenue and share of profit from associates. The credit reporting group’s revenue for the quarter surged 37% to RM52.85 million from RM38.57 million, as revenue from its Malaysian operations rose 28.7% to RM47.65 million from RM37.01 million, while revenue from its international operations ballooned to RM5.2 million from RM1.56 million. CTOS Digital declared an interim dividend of 0.6 sen per share, payable on Dec 14.
WTK Holdings Bhd's wholly-owned unit WTK Alpha Sdn Bhd is acquiring BHB Sdn Bhd, which operates an oil palm plantation in Miri, from Sibu-based Harvard Master Sdn Bhd (HMSB) for RM237.5 million. WTK Alpha is also buying a palm oil mill in Sungai Niah in Miri from HMSB for RM12.5 million. The acquistions are deemed as related party transactions as WTK managing director and shareholder Datuk Seri Patrick Wong Haw Yeong is also a director of WTK Alpha, BHB and HMSB.