KUALA LUMPUR (Aug 25): Based on corporate announcements and news flow today, companies that may be in focus on Friday, Aug 26) could include: Genting Bhd, Guocoland (M) Bhd, Malaysian Resources Corp Bhd (MRCB), Gadang Holdings Bhd, Uzma Bhd, 7-Eleven Malaysia Holdings Bhd, MMC Corp Bhd, Eastern & Oriental Bhd (E&O), Censof Holdings Bhd and Tropicana Corp Bhd.
Genting Bhd’s second quarter net profit jumped by more than four times to RM294.74 million, from RM67.91 million a year earlier, due mainly to lower net fair value loss on derivative financial instruments and lower impairment losses.
Revenue for the quarter ended June 30, 2016 (2QFY16) rose 1.38% to RM4.23 billion, from RM4.17 billion for 2QFY15, the group said in a filing with Bursa Malaysia.
For the first half of the financial year (1HFY16) however, net profit declined 38.14% to RM425.57 million, from RM687.97 million in 1HFY15. This, the group said, was mainly due to lower adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), and lower gain on disposal of available-for-sale financial assets.
This was despite revenue rising 4.61% to RM8.93 billion, from RM8.54 billion in 1HFY15.
Genting said while the non-gaming businesses of Resorts World Sentosa recorded higher revenue in 1HFY16, its gaming business generated lower revenue, resulting in a lower EBITDA, due to lower revenue and the inclusion of a one-off property tax refund of S$102.7 million in 1HFY15.
On its plantation segment, Genting said the Malaysian operations recorded lower revenue in 1HFY16, despite stronger palm product selling prices.
Guocoland (Malaysia) Bhd’s final quarter ended June 30, 2016 (4QFY16) saw a 45% decline in net profit to RM94.4 million, from RM171.4 million a year ago.
The weaker earnings was due to doubling of administrative, selling and marketing expenses, and higher finance costs, besides a loss of RM5.5 million, from a discontinuing operation — compared with a RM99.3 million gain in 4QFY15.
Revenue in 4QFY16 grew 10.7% to RM65.3 million, from RM59 million in the same period last year, due to higher contribution from its office block project in PJ City Parcel A Phase 2, Guocoland said in a filing with Bursa Malaysia.
Guocoland proposed a final single-tier dividend of two sen for FY16.
For the full year FY16, Guocoland’s net profit fell 35.6% to RM121.6 million, from RM188.8 million in FY15, largely on higher cost of sales, administrative, selling and marketing expenses, higher finance costs and lower share of results from associates and joint ventures. Cumulative revenue rose 61.3% to RM315.6 million, from RM195.56 million.
Malaysian Resources Corp Bhd (MRCB) posted a 24.29% drop in net profit for the second quarter ended June 30, 2016 (2QFY16) to RM45.5 million, as the previous corresponding quarter’s net profit of RM60.1 million was boosted mainly by the group’s disposal of Platinum Sentral and other assets.
Correspondingly, the transit-oriented property developer’s revenue fell by a similar quantum to RM389.19 million, according to its filing with Bursa Malaysia today. In 2QFY15, sales amounted to RM530.28 million.
For the first half of FY16 (1HFY16), MRCB’s net profit fell by a whopping 83.26% year-on-year to RM49.89 million or 2.73 sen a share. This compares with last year’s RM297.97 million or 16.69 sen a share.
Revenue dropped 11.69% to RM825.21 million, from RM934.47 million in 1HFY15.
“The group will continue to focus on reducing its net gearing and growing its core activities of Property Development & Investment, and Construction, Engineering & Environment.
The group’s property development projects presently have a gross development value (GDV) of RM50 billion and its external construction order book is RM6.6 billion,” MRCB said of its prospects.
Gadang Holdings Bhd is proposing a share split to sub-divide every one RM1 Gadang share into two shares of 50 sen each. Following that, the company plans to issue up to 129.31 million bonus shares, on the basis of one bonus share for every four subdivided shares held.
Subsequently, the company will undertake a bonus issue of up to 129.31 million warrants, on the basis of one warrant for every four subdivided shares held, according to its filing with Bursa Malaysia today.
Gadang expects the proposals to be completed by end-2016.
Lower gross profit, higher finance costs and lower share of profit in joint venture resulted in Uzma Bhd's earnings for the second quarter ended June 30, 2016 (2QFY16) plunging by 94% to RM563,000 — from RM9.26 million a year earlier.
Revenue in the quarter declined 34.7% to RM91.53 million, from RM140.09 million.
For the cumulative six months (1HFY16), the oil and gas service provider’s net profit gained 24.4% to RM21.54 million or 7.4 sen per share, from RM17.31 million or 6.45 sen per share, despite revenue falling 27% to RM210.66 million, versus RM288.62 million in 1HFY15.
Barring any unforeseen circumstances, Uzma remains optimistic with its prospects for the remaining FY16 and FY17.
Convenience store operator 7-Eleven Malaysia Holdings Bhd said net profit for its second quarter ended June 30, 2016 (2QFY16) grew by 40.31% to RM15.07 million from RM10.74 million a year ago.
In a filing with Bursa Malaysia today, 7-Eleven said despite weaker consumer spending, its profitability expanded because of revenue growth, gross profit margin expansion, other operating income growth and good cost control.
Revenue growth was 4.85% to RM505.7 million from RM482.32 million in 2QFY15. The group said growth in new stores, improved merchandise mix and consumer promotion activity had helped sales growth in the quarter.
7-Eleven also noted its other operating income in the quarter grew, because of commencement of its first main consumer promotion campaign for this year in May. It was up by 9.62% to RM29.48 million, from RM26.89 million last year.
For the first half of FY16 (1HFY16), 7-Eleven's net profit rose 23.4% to RM31 million, compared with 1HFY15's RM25.12 million, while revenue grew 4.5% to RM1.03 billion from RM987.31 million.
MMC Corp Bhd’s net profit for the second quarter ended June 30, 2016 (2QFY16) plunged 90.7% to RM125.02 million, from RM1.35 billion a year ago, as there was no one-off gains of RM1.34 billion from the listing of Malakoff Corp Bhd.
The listing resulted in the deconsolidation of Malakoff’s accounts, as MMC’s interest in Malakoff was reduced from 51% to 37.6%. This also led to MMC’s 2QFY16 revenue falling by 34% to RM950.25 million, from RM1.44 billion a year ago, according to MMC’s filing with Bursa Malaysia.
For the first half of its financial year ended June 30, 2016 (1HFY16), MMC reported a 87.8% drop in net profit to RM176.36 million or 5.79 per share, from RM1.44 billion or 47.46 sen per share a year ago.
Revenue for 1HFY16 fell 44.9% to RM1.88 billion, from RM3.42 billion in 1HFY15.
Excluding the exceptional gains of RM1.34 billion from Malakoff’s listing, MMC said the group’s profit after tax and minority interest for 1HFY16 grew by 75% to RM176.4 million.
On its prospects, MMC said the ports and logistics division is expected to grow its revenue, on the back of improved performances of all three ports — Pelabuhan Tanjung Pelepas Sdn Bhd, Johor Port and Northport.
Eastern & Oriental Bhd (E&O) posted an 86.1% drop in net profit for the first quarter ended June 30, 2016 (1QFY17) to RM3.24 million or 0.26 sen per share, from RM23.26 million or 1.9 sen per share, as it recognised a RM20.27 million disposal gain last year.
"The higher operating profit in the property segment also cushioned the impact of the unrealised foreign exchange loss of RM14.249 million in the investment segment for the current quarter," it added.
In a filing with Bursa Malaysia today, the property developer said its revenue for the quarter surged 137.1% to RM163.31 million, versus RM68.89 million previously, boosted by its property segment.
Despite a protracted soft property market, E&O said its unbilled sales of RM1.03 billion will anchor earnings for the next two financial years.
With the reduction of overnight policy rate, which results in lower borrowing costs to consumers, the group expects demand for properties to gradually improve.
Financial management solutions provider Censof Holdings Bhd saw its net profit jump more than 42 times to RM35.69 million in the first quarter ended June 30, 2016 (1QFY17), from just RM838,000, on significant contribution from the National Single Window (NSW) segment and share of result of an associate company.
Revenue surged 83.61% to RM62.52 million, from RM34.05 million.
Censof group managing director Ameer bin Shaik Mydin said in a statement saying while the group grows its revenue, it is focused on improving cost efficiencies and human resources for better project execution.
Higher contribution from property projects, coupled with reduced finance charges from de-gearing initiatives, helped lift Tropicana Corp Bhd's net profit by 43.8% to RM33.32 million in the second quarter ended June 30, 2016 (2QFY16).
Revenue rose 14.6% to RM358.08 million, from RM312.34 million, boosted by higher revenue recognition from key projects in the Klang Valley and the northern region of Peninsular Malaysia, Tropicana said in a filing with Bursa Malaysia.
Tropicana said net profit for the first six months of FY16 (1HFY16) was up 14.3% to RM48.49 million or 3.35 sen per share, from RM42.44 million or 2.97 sen per share a year earlier.
Revenue fell 8.3% to RM645 million, from RM703.26 million, as 1HFY15 revenue included proceeds from a land sale of RM106.8 million.