Stocks To Watch - MSM, MPI, Deleum, BHIC, Magnum, Khind, AMMB, LNG and AmCorp

KUALA LUMPUR (Nov 14): Based on corporate results released today, stocks that may attract interest tomorrow could be led by MSM, MPI, Deleum, BHIC, Magnum, Khind, AMMB, LNG and AmCorp.

These companies had either achieved much stronger or weaker results for the quarters they reported.

MSM Malaysia Holdings Bhd’s (MSM’s) net profit for the third quarter ended Sept 30, 2013 (3Q13) jumped 73% year on year to RM74.2 million.

However, revenue decreased to RM545.6 million, from RM610.9 million previously, MSM said.

MSM said the lower revenue was due to lower domestic sales despite an increase of export sales.
The group declared a single tier interim dividend of 10 sen per share.

For the nine month period (9M13), MSM’s total profit rose to RM228.7 million from RM162.2 million.

However, revenue fell slightly to RM1.67 billion from RM1.69 billion in the same period last year.

Malaysian Pacific Industries Bhd’s (MPI) net profit soared 125 times year-on-year to RM18 million in the first quarter ended September 30, 2013, from RM143,000 a year earlier.

Revenue grew 4% to RM331 million from RM318 million, said the semiconductor manufacturer in a statement to Bursa Malaysia.

MPI, under the Hong Leong Group, said the jump in profit was due to the strengthening of the US dollar against the ringgit, lower commodity prices, and the planned shift towards better profit margin products.

The firm plans to pay a tax-free dividend of five sen a share for the quarter in review.
Deleum Bhd reported an 18% increase in third quarter net profit from a year earlier, on higher profit from its gas turbine and oil and gas support services divisions.

Deleum said net profit rose to RM14.35 million in the third quarter ended September 30, 2013 from RM12.18 million. Revenue fell to RM108.8 million from RM125.02 million.

Cumulative nine-month net profit was higher at RM34.99 million compared to RM30.95 million a year earlier. Revenue fell to RM307.79 million from RM317.99 million.

Looking ahead, Deleum said its contracts from Petroliam Nasional Bhd are expected to support its earnings.

Boustead Heavy Industries Bhd (BHIC) reported a net profit of RM15.9 million for the third quarter ended September 30, 2013 (3QFY13). This compares with a RM27.1 million net loss a year earlier.

The ship builder said today that the profit came on higher income from maintenance, repair and overhaul (MRO) operations.
It added it is no longer burdened by cost from old ship-building jobs.

Revenue soared 110.9% to RM81.6 million in 3QFY13 from RM38.5 million, BHIC said.

For the nine-month period, BHIC reported a net profit of RM31.2 million compared to a RM58.8 million net loss a year earlier. Revenue climbed 35.9% to RM207.1 million from RM152.6 million.

Looking forward, the group expects its heavy engineering segment’s revenue in 4QFY13 to be driven by the performance of current MRO projects.

In addition, the associates and manufacturing segment’s income will continue to be largely contributed by the littoral combat ship project.

Magnum Bhd’s profit fell by 10.5% year-on-year (y-o-y) for the third quarter ended Sept 30, 2013 (3Q13) due to lower contribution from its gaming sector.

The group recorded profit of RM64.8 million for 3Q13 compared to RM72.4 million in the same period last year. Revenue declined to RM702.4 million for the 3Q13, from RM749.3 million.

But the gaming company declared a third interim dividend of 5% or 5 sen per share.

For the nine month period, the group’s profit fell to RM214.7 million from RM290.1 million previously.
Revenue for the 9M13 also decreased to RM2.25 billion from RM2.35 billion in the same corresponding period in previous financial year.

Khind Holdings Bhd’s net profit for the third quarter ended Sept 30 rose 113% year on year to RM4.8 million due mainly to gain on sale of investment property and higher revenue.

Revenue for the quarter of the electrical home appliances manufacturer rose to RM86.9 million, from RM76.0 million a year ago.

For the nine months of this year, the company posted a net profit of RM13.1 million versus RM6.7 million in the previous year’s corresponding period. Revenue was RM224.5 million versus RM211.7 million.

The company said it is “optimistic of the outlook” for this year.

AMMB Holding Bhd announced that its net profit for the second financial quarter to Sept 30 (2Q14) rose 16% year on year to RM441.2 million, from RM380.4 million a year ago.

Its second quarter revenue also rose to RM2.39 billion, from RM2.00 billion.

The major banking group declared an interim dividend of 7.2% (7.2 sen) per share.

For the first half of the current financial year, its net profit rose to RM906.5 million, from RM823.3 million in the previous year’s first six months. Revenue also rose to RM4.79 billion from RM4.02 billion.

The group said earnings improvement was broad-based across a few divisions in the current reporting quarter as compared to the previous year corresponding quarter.

Looking ahead, AMMB said it expects the domestic economy to grow 4.6% for the full year of 2013, and to pick-up in 2014 from improved global trade, supported by private expenditure.

“With the economy expected to grow at a slower pace in the remaining 2013, combined with easing consumer spending from rationalisation of subsidy and responsible lending measures to address household debts, loans growth could moderate,” it said.

LNG Resources Bhd chalked up a pre-tax profit of RM2.165 million for the third quarter ended Sept 30, 2013, compared with RM434,000 registered in the corresponding quarter last year, Bernama reported.

Revenue increased to RM14.394 million during the period under review, from RM6.333 million registered previously, the company said.

The higher profit before tax was in tandem with the increase in group revenue.

On future prospects, the company said the group's financial performance for the year, will improve.

AmCorp Properties Bhd’s second quarter profit shrank sharply to RM2.8 million from RM14.2 million in the second quarter of previous financial year.

Revenue for the second quarter to Sept 30, 2013, also fell to RM23.9 million, from RM30.1 million in the second quarter of the previous financial year.

For the first half of the current financial year, net profit fell to RM14.0 million, from RM35.0 million in the first half of the previous financial year. Revenue fell to RM56.4 million, from RM59.6 million.

“The board expects sales from its Neobank and other projects in London to contribute positively to the group’s earnings… the board is optimistic that the group’s operations will be profitable for the year ending 31 March 2014,” said AmCorp.



Written by Ho Wah Foon of theedgemalaysia.com