KUALA LUMPUR (Nov 18): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Thursday, Nov 19) could include the following: KLK, Malton, MBM Resources, Tan Chong, Batu Kawan, CBIP, Encorp, ES Ceramics, PJ Development, TSH Resources, Kian Joo, LaFarge Malaysia and Esthetics.
Kuala Lumpur Kepong Bhd's (KLK) profit for the fourth financial quarter ended Sept 30, 2015 (4QFY15) climbed 9.1% to RM186.29 million from RM170.75 million last year, on higher dividend income from Synthomer Plc, surpluses on sale of land and government acquisitions, and realised foreign exchange (forex) gain arising from the repayment of US dollar advances by an overseas subsidiary to the company.
Revenue for the quarter increased 41.37% to RM3.93 billion against RM2.78 billion a year earlier, its filing to Bursa Malaysia showed today.
The plantation giant recommended a 30 sen final dividend for the financial year ended Sept 30, 2015 (FY15), payable on March 15, 2016, bringing its total dividend to 45 sen per share. KLK paid a total of 55 sen dividend in FY14.
For FY15, KLK's net profit fell 12.28% to RM869.91 million from RM991.71 million in FY14, due to lower profit in the plantation, manufacturing and oleochemical segment, despite revenue for the year coming in 22.64% higher at RM13.65 billion from RM11.13 billion last year.
Malton Bhd posted a 71.34% on-year decline in net profit in its first financial quarter ended Sept 30, 2015 (1QFY16) to RM4.33 million from RM15.11 million last year, because of higher initial overheads for new projects to be launched and recognition of higher profits arising from the disposal of certain parcels of land in the previous corresponding quarter.
Malton's revenue came in 10.3% higher at RM123.08 million from RM111.59 million a year earlier, driven by its construction and project management division, its Bursa filing showed.
On prospects, Malton said its ongoing development projects and other construction contracts in hand will contribute positively to its earnings for the financial year ending June 30, 2016 (FY16).
Malton is currently undertaking the development of Bukit Jalil City Signature Shops and The Park Sky Residence in Bukit Jalil, Kuala Lumpur, and the SK One Residence in Seri Kembangan, Selangor.
MBM Resources Bhd's net profit fell 66.8% to RM8.62 million for the third quarter ended Sept 30, 2015 (3QFY15) from RM26.01 million a year ago, due to lower contributions from its joint venture (JV) with Autoliv Hirotako Sdn Bhd and associates.
Revenue for 3QFY15 dropped 2.8% to RM411.18 million, from RM423.09 million in 3QFY14, on lower sales of continental makes of higher value, despite better overall volume sales.
In a Bursa filing today, MBM Resources said share of results of the JV fell by 39.1% to RM2.7 million in 3QFY15, while share of results of associate companies declined by 54.3% to RM13.2 million.
The weak results pulled down its net profit for the nine-month period (9MFY15), which dropped 9.5% to RM72.99 million or 18.68 sen a share, from RM80.67 million or 20.65 sen a share in 9MFY14.
Revenue for 9MFY15 inched up 1.1% to RM1.38 billion, from RM1.36 billion in 9MFY14.
Tan Chong Motor Holdings Bhd's net profit for the third quarter ended Sept 30, 2015 (3QFY15) rose more than 15 times to RM29.18 million from RM1.87 million a year ago, due to a significant increase in operating profit.
In its Bursa filing, operating profit rose 146.6% to RM53.19 million from RM21.57 million in 4QFY14; revenue for the quarter climbed 19.13% to RM1.37 billion from RM1.15 billion in 3QFY14, due to better performance across all business segments.
However, its cumulative nine months' (9MFY15) net profit fell 28.29% to RM69.69 million from RM97.19 million in 9MFY14, due to the decline in the ringgit against the US dollar.
It also realised a one-off write back of RM56.27 million for the provision of additional import duty in 2014.
Revenue for the period grew 20.63% on year to RM4.21 billion from RM3.49 billion last year.
Batu Kawan Holdings Bhd's profit jumped 27% to RM115.33 million in the fourth quarter ended Sept 30, 2015 (4QFY15) from RM90.83 million in the same quarter a year ago, on improved contributions from all business divisions, except property development.
The company announced a final dividend of 35 sen per share for the financial year ended Sept 30 (FY15), its filing to Bursa showed.
"Manufacturing's profit for this quarter was RM56.79 million, significantly higher than last year's corresponding quarter's profit of RM11.22 million due to higher revenue at RM1,821.15 million," it said.
Its investment holding division reported a profit of RM15.34 million due to higher dividend income.
Its property development and plantations segment, however, saw lower profit for the quarter.
The latest quarter's revenue came in at RM4.04 billion, which is 41% higher from RM2.87 billion a year earlier.
However, Batu Kawan's net profit for the entire FY15 slipped 7% to RM484.84 million, from RM521.55 million in FY14 — largely due to lower profit from its manufacturing and plantation divisions — despite revenue climbing 22% to RM14.06 billion from RM11.50 billion.
CB Industrial Product Holding Bhd's (CBIP) profit dropped 34% to RM14.9 million in its third quarter ended Sept 30, 2015 (3QFY15) from RM22.6 million a year ago, on lower project billing from its retrofitting special purpose vehicles and lower project billing and share of results of associates.
Revenue for 3QFY15 fell 17% to RM124 million from RM149.4 million in 3QFY14, its filing showed.
The palm oil mill equipment and parts manufacturer said project billing by its special purpose vehicles' segment was down by 40% compared to the same quarter last year.
In its cumulative nine months to Sept 30 (9MFY15), CBIP recorded an 18.4% fall in net profit to RM54.6 million or 10.37 sen per share from RM67 million last year; revenue was lower by 9.5% at RM357.3 million compared to RM394.8 million in 9MFY14.
Encorp Bhd stands to receive A$6 million (RM18.7 million) under its JV, which will help the company recover its land cost in Perth, Australia.
In statements to Bursa, Encorp said it had paid A$6 million for the 11,000 sq m (1.1 ha) land in May 2012. The tract to be jointly developed with Tew Investments Pty Ltd is located at Tea Tree Close within Cockburn Central.
Encorp is undertaking the JV via wholly-owned subsidiary Encorp Development Property Pty Ltd (EDPL), and aims to develop the land into a commercial and residential development.
"The total consideration of A$6 million in respect of the JV is above the net book value of A$4.8 million as at Dec 31, 2014," Encorp said.
Bursa Malaysia ACE Market-listed ES Ceramics Technology Bhd is looking to transfer to the Main Board in three years.
Its chief executive officer Wong Fook Lin said transferring to the Main Board was something natural, as the company grew.
ES Ceramics' financials have improved. Net profit rose to RM5.59 million in financial year ended May 31, 2015 (FY15), from RM2.62 million a year earlier; in 1QFY16, ES Ceramics posted higher net profit of RM1.51 million, from RM1.15 million a year earlier.
PJ Development Holdings Bhd (PJD) is committed to paying out dividends to its existing shareholders in the future, said its chairman Tan Sri Ong Leong Huat.
Furthermore, he said PJD is working on being more efficient and more careful with property development launches, to ensure its financial performance is at least maintained in this soft property market phase.
PJD, which is facing a suspension risk due to its low public shareholding spread after Ong's OSK Holdings Bhd's takeover exercise that was completed in September, made a net profit of RM87.13 million on revenue of RM906.97 million in its financial year ended June 30, 2015 (FY15).
In FY15, PJD's total dividends came to 6.5 sen a share.
Separately, the group announced the retirement of its managing director Wong Chong Shee and that it had achieved a net profit of RM17.48 million for the three months ended Sept 30, 2015, on the back of a RM210.95 million revenue.
It also declared a single-tier interim dividend of 2.5 sen per share in respect of the financial period ending Dec 31, 2015, to be paid on a date to be fixed.
The company said due to the change in its financial year end from June 30 to Dec 31, effective from the financial year ended June 30, 2015, there is no comparative quarterly segmental information for the current quarter under review.
However, if compared to the corresponding three months in 2015, the group saw its revenue drop by 13.49% to RM210.95 million from RM243.83 million, on lower revenue from its property, construction and integrated building system divisions.
Its latest pre-tax profit is also 32% lower, compared with RM36.22 million in the same period last year, primarily due to lower revenue registered.
TSH Resources Bhd slipped into the red in its third quarter ended Sept 30, 2015 (3QFY15) with a net loss of RM48.19 million compared to a net profit of RM26.36 million a year ago, due to lower average crude palm oil (CPO) selling price, lower crop production due to haze and a loss on forex.
Loss per share stood at 3.54 sen for 3QFY15 compared to earnings per share (EPS) of 1.8 sen a year ago.
Revenue, meanwhile, dropped by 26.56% to RM183.38 million from RM246.95 million in 3QFY14.
According to TSH's Bursa filing, core profit before taxation (PBT) fell 50% to RM20.09 million for 3QFY15 from RM40.1 million a year ago.
For the cumulative nine-month period (9MFY15), the group reported a net loss of RM34.67 million compared to a net profit of RM111.83 million in 9MFY14; this translated to a loss per share of 2.58 sen compared to EPS of 8.31 sen a year ago.
Revenue fell 28.99% to RM593.57 million from RM835.87 million last year.
Kian Joo Can Factory Bhd's profit rose 17% to RM44.25 million for the third quarter ended Sept 30, 2015 (3QFY15), from RM37.83 million last year due to forex translation gains for the quarter.
"The group recorded a forex gain of RM35.1 million in 3QFY15, on remeasurement of its monetary assets denominated in US dollar," it said.
However, the group recorded a loss on derivative financial instruments amounting to RM9.19 million during the quarter.
Revenue for the quarter increased 22% to RM403.83 million, from RM331.62 million in the previous year.
For the nine months to Sept 30 (9MFY15), net profit rose 27% to RM107.84 million, from RM85.23 million in 9MFY14, while revenue jumped 16% to RM1.14 billion from RM982.06 million.
LaFarge Malaysia Bhd recorded a 28.9% increase in profit to RM70.65 million for its third quarter ended Sept 30, 2015 (3QFY15) from RM54.81 million a year ago, due to higher sales revenue from the cement segment, improved plant performance and forex gains.
Revenue for 3QFY15 rose slightly to RM670.88 million from RM664.63 million in 3QFY14, thanks to higher revenue from its cement segment, which offsets the lower revenue from its concrete and aggregate segments.
The group also declared a third interim dividend of 8 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Jan 13, 2016.
For the cumulative nine months (9MFY15), Lafarge Malaysia posted a slight increase in net profit to RM207.66 million from RM206.06 million in 9MFY14.
This is despite revenue falling by a marginal 1.3% to RM2.03 billion from RM2.06 billion.
Beauty products distributor Esthetics International Group Bhd saw its net profit rise 20.6% to RM6.9 million in the second quarter ended Sept 30, 2015 (2QFY16), from RM5.7 million a year ago, mainly on higher revenue and a foreign currency translation of RM2.5 million.
Its latest quarterly revenue rose 8.09% to RM41.02 million from RM37.95 million, its filing to Bursa today showed, mainly due to the group's brand building activities, launch of new products as well as promotional activities.
It declared an interim single-tier dividend of 1.5 sen per share for FY16, payable on Jan 12, 2016.
For the six months ended Sept 30, 2015 (1HFY16), Esthetics posted a net profit of RM10.46 million, up 15.2% from RM9.08 million a year earlier; revenue also improved 4.3% to RM76.09 million from RM72.9 million previously.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)