KUALA LUMPUR (Aug 28): Based on news flow and corporate announcements today, the stocks that may be in focus tomorrow (Aug 29) could include: Mah Sing Group Bhd, Malayan Banking Bhd, Malaysian Airline System Bhd (MAS), China Stationery Limited (CSL), Sumatec Resources Bhd, DRB-HICOM Bhd and IHH Healthcare Bhd.
Mah Sing Group Bhd has proposed the acquisition of an 88.7-acre tract in Puchong for its largest integrated mixed development, with a potential gross development value of RM9.3 billion for approximately RM656.9 million.
In a statement, Mah Sing said the vendor Huges Development Sdn Bhd had also agreed to grant the former the right for an additional 170.58 acres next to the land, for sale or joint venture, subject to terms and conditions to be mutually agreed upon.
Mah Sing said the 88.7-acre piece of land is located in the Puchong CBD, behind IOI Mall near the LakeEdge development. Work on the project is expected to commence next year, spanning 10 years.
With the land acquisition and the agreement for the additional piece of land, Mah Sing’s landbank would increase to 3,890 acres, with a potential total GDV and unbilled sales of approximately RM66 billion.
Malayan Banking Bhd (Maybank) said it will only seek mergers and acquisitions (M&As) opportunities, if the move adds on to its shareholder value, and not merely by expanding the size of its total assets.
Responding to the news on the three-way merger by CIMB Group Holdings Bhd, RHB Capital Bhd and Malaysia Building Society Bhd, Maybank group president and CEO Datuk Abdul Farid Alias said at a press conference today, that the bank’s current size is sufficient to any Malaysian customers, be it corporate or consumer clients.
For the second quarter ended June 30, Maybank reported a 0.5% year-on-year increase in net profit to RM1.58 billion, while revenue rose to RM8.76 billion, from RM8.59 billion. Profit growth was supported by higher net interest and Islamic banking income, growth in net loans, advances and financing, and lower net allowance for bad loans.
It proposed a single-tier interim dividend of 24 sen per share.
Malaysia Airline System Bhd (MAS) reported a wider net loss of RM307.04 million for the second quarter ended June 30, 2014 (2Q14), 74.47% greater than the previous corresponding quarter’s net loss of RM175.98 million.
In a statement, group CEO Ahmad Jauhari Yahya said the national carrier had expected the impact of the MH370 incident to be felt on 2Q14. However, he added that MAS had rolled its sleeves to work hard on regaining market confidence and rebuild sales.
Revenue for the quarter fell to RM7.19 billion from RM7.32 billion in 2Q13, as a result of lower yield and seat factor, following the missing MH370 flight.
Separately, Reuters quoting a source, reported that shares in MAS will be suspended tomorrow (Aug 29), ahead of the announcement of its planned restructuring by state investment fund Khazanah Nasional Bhd.
“About a quarter of the carrier’s nearly 20,000 staff may see their jobs cut in the overhaul, with some international routes set to be abandoned as new management is brought in,” said the same source.
China Stationery Limited (CSL) reported its first quarter of losses, since listing in 2012.
The China-based company reported a net loss of RM241.08 million for the second quarter ended June 30, 2014 (2Q14), compared to a net profit of RM60.98 million in the previous corresponding quarter, due to impairment loss of RMB514.27 million (RM269.63 million) caused by a fire at one of its plants.
Revenue for the quarter fell 75.6% to RM63.49 million, from RM259.69 million in 2Q13.
CSL said due to fire incident on April 04 which caused the plant to be sealed by the police department for investigation, the production and sale on non-patented products came to a halt in 2Q14.
It foresees more challenges under the current economic environment and impact by reduced orders from customers affected by the fire incident.
Sumatec Resources Bhd reported a net profit of RM6.7 million for the second quarter ended June 30, 2014 (2Q14), compared to a net loss of RM3.9 million in 2Q13. Revenue for the quarter came in at RM13.75 million, on income from upstream oil and gas activities.
Net profit for the cumulative six months stood at RM11.17 million, against a net loss of RM9.16 million in the year before.
However, Sumatec which is categorised as a PN17 company, cautioned that it may fall short of the forecast net profit of RM69 million for the financial year ending Dec 31, 2014.
“In view of the technical requirements to install artificial lift pumps on a number of wells, the company as a result, has seen a delay in bringing some of the wells on to production,” it said, noting that to address the situation, management will deploy all available resources to expedite completion of the remaining works under the workover program.
DRB-HICOM Bhd’s net profit jumped 950% to RM107.84 million in the first quarter ended June 30, 2014 (1Q15), from RM10.26 million a year ago, due to strong sales in its automotive and services sectors.
Revenue rose 22% year-on-year (y-o-y) to RM3.72 billion.
The group attributed the much-improved financial performance in its first quarter to the healthy growth of the economy, as well as operating efficiencies of the group’s various business activities. It expects to achieve a satisfactory financial performance for the financial year ending March 31, 2015.
IHH Healthcare Bhd posted a 33% increase in net profit for the second quarter ended June 30, 2014 to RM209.1 million, from RM156.8 million a year ago.
Revenue climbed 11% y-o-y to RM1.87 billion, from RM1.68 billion.
“Benefiting from organic growth, new revenue streams, and the continuous ramp up of operations for Mount Elizabeth Novena Hospital, Acibadem Ankara Hospital and Acibadem Bodrum Hospital which incurred significant start-up costs last year, EBITDA excluding contributions from PLife REIT, grew 16% y-o-y to RM434.9 million,” said the group in a press release.
Its core earnings, excluding exceptional items, also increased 21% y-o-y to RM178.6 million, which was slightly offset by incremental depreciation and financial costs for the recently-completed Acibadem Atakent Hospital and Pantai Hospital Manjung.
Written by Wei Lynn Tang of theedgemalaysia.com
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