KUALA LUMPUR (April 30): Here is a brief recap of some business news and corporate announcements that made the headlines on Monday (April 29):

QSR Brands and KFC Malaysia confirmed it suspended operations of its outlets to manage costs, amid news that over 100 of its outlets have ceased operations as affected employees were offered to relocate to operating stores, said the Johor Corp-linked company. KFC is among several global brands facing a boycott movement due to purported support or perceived link to Israel amid the ongoing conflict in Gaza. — QSR Brands confirms temporary closure of KFC outlets, says it is to manage rising costs

Nestlé (Malaysia) Bhd's net profit for the first quarter ended March 31, 2024 (1QFY2024) dipped 0.8% to RM195.51 million from RM197.15 million a year earlier, due to slightly lower sales, offset by cost management initiatives and better commodity costs. Revenue slipped 3.2% to RM1.78 billion from RM1.84 billion. It said 2024 to be challenging from the lingering effect of inflation and foreign exchange volatility on Malaysians' purchasing power as well as heightened competition. — Nestlé's 1Q net profit dips 0.8% to RM195.5m on lower domestic sales

ViTrox Corp Bhd, whose net profit halved in 1QFY2024, is ramping up research and development (R&D) investments to 10%-12% of revenue, ahead of an expected semiconductor recovery towards 2H2024. The R&D focus will be on vision inspection, AI and robotics, CEO Chu Jenn Weng told The Edge. Vitrox trimmed its R&D expenditure to 7.8% of total revenue in 2023, due to a slowdown in demand. — ViTrox to continue to ramp up R&D investment on anticipated semiconductor recovery in 2H2024

LPI Capital Bhd net profit surged 37% to RM101.29 million in 1QFY2024 from RM73.83 million, on lower net expenses from reinsurance contracts held and higher investment income. Revenue climbed 1.4% year-on-year to RM469.8 million from RM463.3 million as gross written premiums rose. — LPI Capital’s 1Q net profit surges 37%, shares snap losing streak after results 

Building materials maker Ajiya Bhd posted its second straight quarterly loss of RM12.71 million for 1QFY2024, from net profit of RM46.11 million a year ago, despite logging higher revenue. The loss was due to higher operating expenses, RM9.65 million loss on disposal, and a RM6 million fair value loss on other investments. In contrast, it recorded a fair value gain on other investments of RM43.31 million a year before. — Ajiya logs second straight quarterly loss of RM12.7m in 1Q

YTL Hospitality REIT is planning to develop a hotel in Hokkaido, Japan, for an estimated RM199 million. The site, in Japan's skiing town of Niseko, is owned by its unit Starhill REIT Niseko GK. It involves a five-storey hotel with a two-storey basement under the Moxy brand, a segment of Marriott’s millennial-focused brand. The proposed development is to be completed in 4Q2026. — YTL REIT to develop a Moxy hotel in Hokkaido for RM199 mil

Tex Cycle Technology (M) Bhd has partnered Evolusi Bersatu Sdn Bhd to invest RM100 million in Sabah’s first integrated scheduled waste management facility. Construction will start in 2H2024 to be fully operational by 4Q2025. The project is designed to complement existing scheduled waste management providers, it said. — Tex Cycle in JV to invest RM100m to build Sabah waste management facility

Gadang Holdings Bhd called off its planned acquisition of a 21.08-acre land in Kwasa Damansara — known as R3-1 — for RM114.78 million from Kwasa Development (3) Sdn Bhd (KD3). This was after it failed in its appeal to the Economic Planning Unit (EPU) for a waiver of the Bumiputera equity requirement for the land. — Gadang fails in appeal to EPU for Bumi equity waiver to buy Kwasa Damansara land

HHRG Bhd was slapped with a RM58.18 million suit by Ooi Chieng Sim, in relation to a loan given out by the former executive chairman to the company. The suit named HHRG as a defendant, alongside managing director H’ng Choon Seng and deputy MD Kee Swee, as well as three of HHRG’s units. Ooi alleged HHRG’s three units defaulted payment on RM10 million worth of loan he provided. He said HHRG unlawfully converted the said loan into HHRG shares, which were given to H’ng and Kee. Ooi is also seeking 5% interest on the sum claimed. HHRG has denied the claims. — HHRG faces RM58 mil suit over alleged default of loan by ex-chairman

Sapura Energy Bhd landed a five-year contract from PTTEP Sabah Oil Ltd and PTTEP Sarawak Oil Ltd to provide underwater services. The contract, which is on a call-out basis, will expire on Feb 20, 2029. The scope of work includes provision of a diving support vessel, air and saturation diving systems, remotely operated vehicles (ROVs), and other related underwater services. — Sapura Energy bags underwater service contract from Thai-owned PTTEP group

Tin producer Malaysia Smelting Corp Bhd (MSC) declared a final dividend of seven sen per share, amounting to RM29.4 million, for the financial year ended Dec 31, 2023 (FY2023). The dividend’s ex-date is June 13, and it is payable on June 28. This brings the total dividend payment for FY2023 to 14 sen per share, or RM58.8 million, its highest payout in eight years. — Malaysia Smelting Corp announces final dividend of seven sen per share

Capital A Bhd said its passenger count rose 17% year-on-year (y-o-y) to 15.4 million in 1Q2024, lifted by school holidays and the Chinese New Year. Load factor rose one percentage-point  year-on-year to 90% in January-March. “The resurgence of China and India routes both delivered a robust load factor of 94%, higher than pre-Covid due to the visa-free travel corridors of both regions introduced at the end of 2023,” it said. — Capital A’s passenger volume rises 17% in 1Q, load factor climbs to 90%

Doris Wong Sing Ee emerged as a substantial shareholder of BSL Corp Bhd after acquiring 97 million shares and raising her stake to 7.1%. Wong acquired the shares from the open market on April 26. The acquisition price was not disclosed. Based on a back-of-envelope calculation, the block of shares was estimated to be worth RM2.91 million, based on BSL Corp’s closing price of three sen on April 26. —  Metronic Global ED Doris Wong emerges as substantial shareholder of BSL

Integrated circuit (IC) design service provider Oppstar Bhd is collaborating with South Korea’s tech giant Samsung Electronics Co Ltd for the production of industrial ICs. They will be manufactured using Samsung’s 14 nanometre (nm) FinFET technology foundry process. However, no other details were given on the collaboration. — Oppstar partners with Samsung to produce industrial integrated circuits

Kossan Rubber Industries Bhd clarified that the fire at a paint factory in Meru Industrial Park, Klang on Monday had no impact on operations at its rubber glove factories. “It is Kossan Paint, which has nothing to do with Kossan Rubber Industries Bhd,” its group managing director Tan Sri Lim Kuang Sia told The Edge. In the incident, two buildings of Kossan Paint's paint processing plant were destroyed by a fire. The total losses are still under investigation, according to reports. No one was injured. —  Fire outbreak at paint processing plant 'has nothing to do with Kossan Rubber Industries', says MD