KUALA LUMPUR (May 24): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday.

Sime Darby Property Bhd (KL:SIMEPROP) will build and lease out a hyperscale data centre at its Elmina Business Park in a deal worth RM2 billion, marking the group’s entry into the data centre segment. The project is expected to begin in the second quarter of this year, and be completed in 2026. Once construction is completed, the group will sign a 20-year lease with Pearl Computing Malaysia Sdn Bhd — a wholly owned unit of Singapore-based Raiden APAC Pte Ltd — with options to renew for two additional five-year terms. On a separate matter, its group managing director Datuk Azmir Merican Azmi Merican said it is confident of continuing to defend its profit margin via a strategic product mix for the group’s financial result for the first quarter ended March 31, 2024 (1QFY2024) serves as a strong testament to the effectiveness of having a good product mix as a tool to fortify margins. — Sime Darby Property to build, lease out data centre in RM2 bil deal Sime Darby Property confident of defending profit margin

Meanwhile, Sime Darby Bhd (KL:SIME), which assembles motor vehicles and sells heavy equipment, saw its net profit rose 41.7% for the third quarter from a year earlier, thanks to higher sales and income from newly acquired businesses. Net profit for 3QFY2024 was RM340 million, compared with RM240 million a year earlier, while revenue surged 63.4% to RM18.84 billion, from RM11.53 billion previously. — Sime Darby's 3Q net profit rises 41.7%, flags tough markets in China, Australia

Axis Real Estate Investment Trust (KL:AXREIT) is acquiring two automotive service centres worth RM125 million. Under the purchase agreements, the trust will then lease the properties back to the seller, Cycle & Carriage Bintang Bhd. The group said that the proposed acquisition “will be accretive to Axis’ distributable income, and adds to the portfolio of properties that will benefit the fund in the long term,” the trust said. — Axis REIT to acquire two auto service centres for RM125m

Public Bank Bhd (KL:PBBANK) has lost a case against a house buyer, who sued the bank for terminating a loan facility agreement after the first disbursement. The court found that the bank failed to provide documents of purported falsified supporting documents and claims that the customer inflated his income, which had resulted in the facility and house purchase to be terminated. As a result, the Kuala Lumpur High Court ordered the bank to pay close to RM65,000 in damages to the house buyer, in addition to a sum the court will decide on after assessing the man’s loss of the property and his subsequent loss of reputation on being blacklisted by the Central Credit Reference Information System (CCRIS) and CTOS data system. — Public Bank loses case against house buyer on failure to prove falsification of supporting document

YTL Corp Bhd (KL:YTL) posted a 19.8% increase in net profit for its third financial quarter ended March 31, 2023 (3QFY2024), as all of its business segments reported higher earnings. Quarterly net profit rose to RM496.23 million from RM414.14 million a year earlier, despite revenue coming in slightly lower by 1.7% at RM7.21 billion compared with RM7.33 billion previously. The conglomerate's two biggest contributors were utilities through the listed YTL Power International Bhd (KL:YTLPOWR), in which it has a 49.08% direct and a 6.49% indirect stake, and cement and building materials through its 78.58% indirectly owned Malayan Cement Bhd (KL:MCEMENT), or MCement. — YTL Corp's 3Q net profit rises 20% on higher contribution from all business segments Power generation, investment holding segments help lift YTL Power 3Q net profit by 34%

KLCCP Stapled Group (KL:KLCC) registered a 4.1% increase in net profit for the first quarter ended March 31, 2024 (1QFY2024) to RM188.03 million from RM180.56 million a year earlier, on the back of steady performance across its business segments. The group — comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT) — saw quarterly revenue rising 7.4% to RM408.9 million from RM380.74 million. The group declared a dividend of nine sen per stapled security for the quarter, 5.9% higher than the same period last year, payable on June 28. — KLCCP Stapled Group reports marginal increase in 1Q earnings, pays 9 sen dividend

British American Tobacco (Malaysia) Bhd (KL:BAT), or BAT Malaysia, posted a 34.46% year-on-year (y-o-y) lower net profit for the first quarter of 2024, dragged down by higher operating expenses due to ongoing investments as the tobacco group transitions towards a multicategory business, coupled with inflationary pressures and higher cost of vapour products. Net profit for the three months ended March 31, 2024 (1QFY2024) was RM29.99 million — the lowest level seen in over two decades since 4QFY2000 — against RM40.32 million a year earlier. Quarterly revenue, however, grew 5.57% to RM411.97 million from RM390.23 million in 1QFY2023, thanks to its new vapour brand Vuse, which was introduced to the market in the second half of last year. The group has declared a first interim dividend of 10 sen per share — the lowest ever declared — amounting to RM28.55 million for FY2024, payable on June 20. — BAT Malaysia posts over two-decade-low profit in 1Q, declares 10 sen dividend

Berjaya Food Bhd (KL:BJFOOD) or BFood incurred a net loss of RM29.76 million for the third quarter ended March 31, 2024 (3QFY2024), its second straight quarterly loss amid lower revenue because of an ongoing boycott of its franchised coffee chain Starbucks Malaysia over the current Middle East conflict. Revenue for the quarter declined 47.85% to RM138.65 million compared to RM265.85 million a year ago. — Berjaya Food incurs second straight quarterly loss in 3Q, expects improved performance in next quarter

Velesto Energy Bhd's (KL:VELESTO) first quarter net profit more than tripled year-on-year, driven by higher utilisation and average daily charter rates for jack-up rigs. Net profit for the quarter ended March 31, 2024 (1QFY2024) rose to RM46.81 million, from RM14.22 million. The group, which is 41.7%-controlled by Permodalan Nasional Bhd, said revenue grew 18% to RM338.58 million from RM287.25 million in 1QFY2023. — Velesto's 1Q earnings more than triple on higher rig utilisation, charter rates

Inari Amertron Bhd (KL:INARI), Malaysia’s biggest outsourced semiconductor assembly and test firm saw its net profit rose 29% RM73.72 million in its 3QFY2024 from RM57.36 million a year earlier, thanks to higher loading volume and currency gains. Revenue for the quarter surged 26% to RM347.63 million from RM275.6 million. in the near term, Inari expects “continued positive results”for FY2024 from improvements in production capacity and utilisation, operational efficiencies and a strong US dollar. — Inari Amertron net profit rises 29% in 3Q, investing in new product line

Sugar manufacturer MSM Malaysia Holdings Bhd (KL:MSM) saw its second consecutive quarter of net profit as better selling prices and utilitisation offset higher production costs. Net profit for 1QFY2024 was RM41.71 million compared to a net loss of RM35.88 million last year, while revenue climbed 54% to RM906.61 million from RM588.39 million on higher volume and prices. MSM remains focused on expanding its domestic market share by widening market channels, increasing industry outreach, and enhancing consumer reach points, leveraging steady demand, said CEO Syed Feizal Syed Mohammad. “We are also actively expanding our export market from [the] present 17 countries, increasing to 25 countries beyond Asia Pacific and South Asia into Africa, Europe and North America,” he added. — MSM reports second consecutive quarter of profit as better prices, volume trump costs