How will business fare?

February is typically a busy month for the corporate world. Most companies listed on Bursa Malaysia will report their fourth quarter financial numbers.

Some don't even wait for the deadline. Public Bank Bhd has always announced its numbers in January. Mobile phone operator DiGi.Com Bhd has also made it a habit to be early.

But although it's good to know how they did last year, it is more interesting to find out what they think business will be this year.

Public Bank had a record net profit of RM3.1 billion for 2010, a 21 per cent growth. It expects to maintain that expansion this year, which means another record year. Malaysian banks are riding on a wave of economic growth. Gross domestic product for 2010 is set to expand by around 7 per cent, while a 5-6 per cent rise is expected this year.

Greater economic activity means more people and companies will borrow to fund their purchases or investments.

DiGi also had a good 2010. It maintained net profit above RM1 billion while revenue rose by a tenth to RM5.4 billion. It expects to achieve high-single digit revenue growth in 2011 and improve profit margins by cutting costs.

The telecoms industry is likely to benefit from Malaysians new love affair with smartphones, devices that allow easy connection to the Internet.

Since Malaysians are also crazy about social media, especially Facebook, it is no wonder that more than half of all mobile phone sales in the country are smartphones, according to research firm GfK.

Another company that has reported early is Malaysian Resources Corp Bhd, the developer of KL Sentral, a now busy business district. This Employees Provident Fund subsidiary made RM1.1 billion in revenue and almost doubled net profit to RM67 million in 2010.

MRCB expects to deliver "continuous growth" in revenue and profits for 2011. KL Sentral is a development that will run until 2015, which means that if demand for offices there remains buoyant, MRCB is likely to do well.

Pintaras Jaya Bhd is another property-related company with an early report card. The piling specialist doubled its second quarter net profit although revenue was down.

What gives? It is a very prudent construction company with no debts and a lots of cash and investments.

In fact, gains on its stock market investments helped to boost its second quarter profit.

Pintaras also expects a better second half as it has won more jobs and is hiring more people. Its financial year ends in June. But it also sounded a note of caution.

"Concerns on higher raw material, fuel and labour costs in the next two years will accentuate. The board believes that inflation will rear its ugly head," it told Bursa Malaysia.

Last but not least is EPIC or Eastern Pacific Industrial Corp Bhd. The oil and gas supply base and port operator in Kemaman had a 56 per cent jump in fourth quarter profits. Full-year net profit rose by a quarter while revenue was up 28 per cent.

As for the 2011 outlook EPIC, a unit of the Terengganu state government, thinks it will do better than last year.

What these cursory glances mean is that Malaysian companies are still confident of doing well this year.

But these five firms are mostly thriving on a buoyant local economy. Companies that have to deal with foreign markets like exporters would still face the spectre of uncertainty, thanks to weak developed markets like the US and Europe.

In the meantime, it appears that corporate Malaysia deserves a big pat on the back, a good bonus in the wallet and a short party this month. Then, it's back to the grind, folks.