KUALA LUMPUR (Apr 25): Based on corporate announcements and news flow today, the companies that may be in focus on Tuesday (April 26) could be the following: Allianz Malaysia, KKB Engineering, 7-Eleven, Nestle, Hong Leong Industries, United Plantations, IGB REIT, Globetronics, Unisem, Sasbadi, Pantech, Axis REIT and Texchem.
Insurance provider Allianz Malaysia Bhd has ended discussions to acquire HSBC Amanah Takaful (Malaysia) Bhd.
In a filing with Bursa Malaysia today, Allianz Malaysia said it has discontinued its negotiations with the shareholders of HSBC Amanah, namely HSBC Insurance (Asia Pacific) Holdings Ltd, JAB Capital Bhd and the Employees Provident Fund (EPF) Board, over the proposed acquisition.
It did not give a reason why the talks failed.
Allianz Malaysia had been pursuing a bid for HSBC Amanah since October last year.
Engineering and construction firm KKB Engineering Bhd has entered into a Memorandum of Understanding (MoU) with a China-based nuclear power consultant company to scout for possible future tenders for projects in Sarawak.
In the group’s filing with the stock exchange today, it announced that it is collaborating with State Nuclear Electric Power Planning Design & Research Institute Co Ltd (SNPDRI) to identify business opportunities and pre-qualify to be eligible to participate in tenders for projects in the state.
The MoU will be valid for a term of six months, with an option for extension of a further six months, it added.
Convenience store chain operator 7-Eleven Malaysia Holdings Bhd is planning to undertake a rights issue of new warrants at an issue price of 10 sen for each warrant, to raise up to RM61.67 million for working capital purposes.
The proposal entails the issuance of up to 616.69 million warrants on the basis of one warrant for every two existing shares, said 7-Eleven in a Bursa Malaysia filing today.
The exercise price for these warrants are set at RM1 per warrant, after taking into consideration the theoretical ex-rights price of 7-Eleven shares of RM1.48, calculated based on the five-day volume weighted average market price up to and including April 18 of RM1.66.
Nestle (Malaysia) Bhd closed its first quarter ended March 31, 2017 (1QFY17) with a 4.4% rise in net profit to RM230.43 million from RM220.68 million a year ago, as efficient cost management negated the impact of higher commodity prices and a weaker ringgit.
Nestle told Bursa Malaysia today that its revenue for the quarter grew 4.4% to RM1.37 billion from RM1.31 billion recorded in the same quarter last year, backed by higher contributions from both domestic and export sales, which gained 4.7% and 3.6% respectively.
Looking forward, Nestle said it will continue to implement its "Fuel the Growth" strategy, which focuses on supply chain efficiency and intensified trade and consumer promotions.
Though higher input costs and consumer confidence levels will remain a challenge in 2017, the group is confident its "proven strategy to fuel, innovate and transform to grow" will enable it to weather these headwinds, said chief executive Alois Hofbauer in a separate statement.
Hong Leong Industries Bhd's net profit rose 26.55% to RM74.22 million or 24 sen per share in the third financial quarter ended March 31, 2017 (3QFY17), from RM58.65 million or 19.02 sen per share last year.
Revenue climbed 5.55% to RM585.82 million, from RM555.03 million previously.
It has proposed a dividend of 30 sen per share that will go ex on May 12, and payable on May 30 this year.
For its nine-month period ended March 31, 2017 (9MFY17), net profit was up by 16.84% to RM207.66 million, from RM177.73 million previously. Revenue was also 5.94% higher at RM1.71 billion, from RM1.62 billion in 9MFY16.
Palm oil planter United Plantations Bhd net profit for the first quarter ended March 31, 2017 (1QFY17) rose 30% to RM77.7 million or 37.38 sen per share from RM59.8 million or 28.76 sen per share a year ago, driven by its plantation segment.
According to a filing with Bursa, revenue surged by 46.1% to RM379.2 million versus RM259.6 million.
On the Group’s prospects, United Plantations said that palm oil production has now recovered from the setback caused by the El Nino phenomenon and is expected to gain momentum in the coming months facilitating a build-up of depleted stocks but the surge in production could put pressure on prices of palm oil.
It added that increased US soy bean plantings and a continuous increase of South American soy bean production combined with a slight improvement in the Malaysian currency against the US$ are also factors affecting market prices for vegetable oils further.
Mid Valley Megamall and The Gardens Mall operator IGB Real Estate Investment Trust’s (REIT) posted a 2.6% increase in net property income for the first quarter ended March 31, 2017 (1QFY17) at RM96.06 million, from RM93.62 million a year earlier, on higher rental income.
In a filing with Bursa Malaysia today, it said its quarterly distributable income was also up 2.69% to RM84.88 million, against RM82.66 million last year (1QFY16).
The REIT saw its rental income grow by 3.06% to RM106.49 million for 1QFY17, from RM103.33 million previously.
Going forward, IGB REIT said notwithstanding the increasing supply of retail shopping space, lower expected retail sales growth and intense competition, the Manager would continue to strengthen IGB REIT’s performance by proactively exploring asset enhancement initiatives at both of its malls, in order to maintain a stable flow of distributable income and to create long-term value for its unitholders.
Semiconductor maker Globetronics Technology Bhd recorded a 27% year-on-year (y-o-y) jump in net profit in its first quarter ended March 31, 2017 (1QFY17), despite falling revenue, mainly due to lower forex loss incurred during the period.
Earnings came in at RM4.7 million or 1.65 sen per share from RM3.7 million or 1.31 sen per share in the corresponding quarter a year ago. During the quarter, it registered a forex loss of RM600,000 versus a forex loss of RM5 million a year ago.
Revenue, however, fell 15% y-o-y to RM49.83 million from RM58.74 million, its bourse filing today showed, due mainly to lower volume loadings from some of its customers as a result of declining end-consumers' demand.
The group also announced a first interim single tier ordinary dividend of two sen per share and a single tier special dividend of three sen per share
Globetronics said the mass production of new products will enable it to register strong recovery in its business and product loading in the second half of the financial year.
Semiconductor packaging and test services provider Unisem (M) Bhd recorded a 29% jump in its net profit for the first quarter ended March 31, 2017 (1QFY17) to RM44.9 million from RM34.7 million a year ago, mainly due to improved profit margin, higher interest income and lower interest expense.
Quarterly revenue climbed 13% to RM360.25 million from RM317.81 million a year ago.
Its board of directors expect the group's performance to remain satisfactory till the end of the financial year.
Book publisher Sasbadi Holdings Bhd’s net profit for its second financial quarter ended March 31, 2017 (2QFY17) declined by 19.13%, following lower revenue and higher operating costs.
The group’s filing with the exchange showed net profit declined to RM5.37 million or 1.92 sen a share for the quarter under review, from RM6.64 million or 2.5 sen a share last year while revenue dropped 19.74% to RM27.17 million from RM33.86 million previously.
For its half-year period ended March 31 (1HFY17), Sasbadi’s net profit was up nearly 12% to RM9.71 million from RM8.67 million last year. Similarly, revenue was up 6.37% to RM58.38 million from RM54.89 million.
Looking forward, Sasbadi said it will continue to introduce new print and digital products into the market, and grow its network via its direct selling unit Mindtech Education Sdn Bhd.
The group will also explore new opportunities with the Education Ministry, as well as pursue acquisition opportunities that are complementary to its business, it added.
Pantech Group Holdings Bhd saw its net profit jump 53.9% to RM11.27 million or 1.53 sen per share in the fourth financial quarter ended Feb 28, 2017 (4QFY17), from RM7.32 million or one sen per share a year ago, thanks to increased sales demand and delivery in its downstream oil and gas (O&G) projects, namely the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.
Quarterly revenue grew 39.7% to RM152.58 million in 4QFY17, from RM109.24 million in 4QFY16, according to its Bursa filing.
The group also proposed a final dividend of 0.5 sen per share for FY17, subject to shareholders’ approval at the forthcoming annual general meeting.
Pantech manufactures carbon steel elbows, stockist of carbon and stainless steel pipe, fittings, valves, flanges and hardware in Malaysia.
With continuous development of the Rapid projects and associated facilities in southern Johor, Pantech believes its long-term outlook continues to be positive.
Nevertheless, it acknowledged the short-term challenges in the O&G industries.
Axis Real Estate Investment Trust’s (REIT) net property income for the first quarter ended March 31, 2017 (1QFY17) came in at RM37.17 million, an increase of 4.18% year-on-year from RM35.68 million.
It has proposed a first interim distribution per unit of 2.15 sen, payable on May 31.
Axis REIT told the local bourse that total trust revenue for the quarter under review rose 3.59% to RM42.69 million from RM41.22 million in 1QFY16.
The REIT said its manager is optimistic that it will be able to maintain its current performance for FY17 in view of the satisfactory performance of its existing investment portfolio and its growth strategy to actively pursue quality acquisitions.
Texchem Resources Bhd's restaurant division is expected to double its gross profit and drive up revenue by 17% to 20% in its financial year ending Dec 31, 2017 (FY17), said its executive chairman Tan Sri Fumihiko Konishi.
After the group’s annual general meeting today, he told reporters that growth is showing in the restaurant division, particularly its Sushi King restaurant chain which is recording a recovery after the impact of the goods and services tax (GST) implementation in 2015.
Konishi said the group also plans to expand its Sushi King outlets to 130 this year from 113 now, opening in smaller towns where there has been an increase in demand.
Nonetheless, he noted that Texchem is being affected by higher raw material cost, and the group is trying to source for localised raw materials which is in line with management’s ongoing halal certification effort.