CIMB Group, Tan Chong Motor, TH Plantations, MyEG, KNM Group, Censof, Wellcall, Muhibbah Engineering, Masteel, Destini, GDex and Heveaboard

Saturday 20 Apr 2024

KUALA LUMPUR, (Aug 28): Based on corporate announcements and newsflow today, the companies that may be in focus when the market reopens on next Tuesday (Sept 1) could be the following: CIMB Group, Tan Chong Motor, TH Plantations, MyEG Services, KNM Group, Censof, Wellcall, Muhibbah Engineering , Masteel, Destini Bhd, GD Express (GDex) and Heveaboard.

CIMB Group Holdings Bhd, which net profit shrunk substantially due to hefty provision in the first six months, expects to perform better in the second half of its financial year ending Dec 31, 2015 (2HFY15), while maintaining a challenging outlook.

CIMB (fundamental: 1.05; valuation: 2.25) group chief executive Tengku Datuk Zafrul Tengku Abdul Aziz said the group's brighter outlook for 2HFY15 is supported by expectations of lower provisions for the period.

"We expect the second half to be better in terms of our performance, because we think our provisions levels have peaked in the first half. Having said that, we remain cautious on the economic outlook for the second half of the year,” said Tengku Zafrul at today’s media briefing on the group's results for 1HFY15.

Tengku Zafrul added that CIMB is maintaining its return on equity (ROE) target of 11% and loan growth target of 10% for the group as a whole in 2015.

Its 2QFY15 net profit fell 33% to RM639.75 million from RM949.94 million in the previous corresponding quarter, while revenue declined 12% to RM3.83 billion from RM3.41 billion.

The group proposed a dividend of three sen a share for the quarter in review, despite the earnings contraction.

Tan Chong Motor Holdings Bhd’s net profit fell 74% to RM14.16 million in the second quarter ended June 30, 2015 from RM53.84 million a year ago, on higher completely knocked down (CKD) kits cost arising from unfavourable foreign exchange rate.

However, its quarterly revenue grew 16.2% to RM1.263 billion from RM1.088 billion, largely due on higher revenue from its vehicles assembly, manufacturing, distribution and after sale services segment.

For the six months ended June 30, 2015, net profit fell 57.5% to RM40.51 million, from RM95.32 million in the previous corresponding quarter.

Revenue for the six months rose 20.7% to RM2.833 billion, from RM2.348 billion.

Despite lower earnings, Tan Chong announced an interim single tier dividend of 4% or two sen per share, bringing the total dividend declared so far to 10% or five sen per share.

“The competitive business environment driven by sales promotion activities, coupled with unfavourable foreign exchange rates, has affected the bottom-line.

“It was also due to a one-off write back of Nissan Vietnam Co., Ltd. provision for additional import duty of RM56.27 million (equivalent to US$16.98 million) in first half of 2014,” it said.

TH Plantations Bhd’s net profit fell 74.6% in the second quarter ended June 30, 2015 (2QFY15), as it was not spared from an industry-wide slump in crude palm oil (CPO) prices.

Its earnings for 2QFY15 was at RM5.15 million or 0.58 sen per share, down from RM20.24 million or 2.29 sen per share a year ago.

Revenue was also down by 16.9% to RM110.18 million in 2QFY15, from RM132.59 million in 2QFY14, mainly due to lower gross profit margins (down 67% year-on-year), driven by lower average CPO prices realised. 
  
For the six months period (1HFY15), the group recorded a 54.8% drop in net profit to RM11.72 million, from RM25.95 million in 1HFY14, mainly due to lower sales volume and average CPO prices realised.

Revenue fell 25.1% to RM192.48 in 1HFY15 million, from RM256.84 million in 1HFY14.

In a statement today, TH Plantations said the group’s earnings for both second quarter and first half of FY15 was impacted by lower commodity prices. Its average CPO realised prices for 2QFY15 was RM2,092 per tonne and RM2,121 per tonne for 1HFY15, a decline of 17% and 16% respectively.

TH Plantations' chief executive officer and executive director Datuk Zainal Azwar Zainal Aminuddin said 2015 has turned out to be even more challenging for the palm oil sector, than anticipated.

The government contract for provision of online renewal of foreign workers’ permit (FWP) has given a big boost to MyEG Services Bhd’s earnings.

The company, which is also providing online renewal of road tax, announced a 38% jump on its net profit to RM22.95 million for the fourth quarter ended June 30, 2015 (4QFY15), against RM16.63 million a year ago.

MyEG's revenue grew 27.4% to RM45.06 million, from RM35.37 million previously. Earnings per share also jumped to 1.90 sen for the current quarter, from 1.10 sen.

In a filing with Bursa Malaysia today, the company said the increase in revenue and profit is primarily attributable to an increase in revenue contributions from its online renewal of FWP and ancillary services, as well as higher transaction volume from its existing services, as compared to the preceding quarter, which was offset by an impairment of investment amounting to RM857,000.

For the full year (FY15), the company saw its annual net profit up by 36% to RM68.14 million, from RM50.11 million previously.

Meanwhile, its cumulative revenue for the period (FY15) stood at RM141.52 million — a 29% leap from RM109.87 million in FY14.

KNM Group Bhd has clinched an engineering, procurement, construction and commissioning (EPCC) contract worth RM268.5 million from Cypark Sdn Bhd.

In a filing with Bursa Malaysia today, KNM said its wholly-owned subsidiary, KNM Process Systems Sdn Bhd (KNMPS), has secured the contract through SHK Consortium, a consortium company formed between KNMPS and Hitachi Zosen Corporation.

It added KNMPS has today received a letter of award from Cypark to undertake EPCC works in respect of the Solid Waste Modular Advanced Recovery and Treatment Systems Waste Management Solutions at Ladang Tanah Merah, Negeri Sembilan, Malaysia (SMART WTE System).

According to KNM, the contract covered the offshore portion for the EPCC works in the sum of 3.893 billion yen (equivalent to about RM135.38 million), and onshore portion of the EPCC works in the sum of RM133 million only.

Censof Holdings Bhd saw its net profit decline 50.7% year-on-year (y-o-y) to RM838,000 or 0.17 sen per share for the first quarter ended June 30, 2015 (1QFY15), compared with RM1.71 million or 0.43 sen per share previously.

The company’s decreased net profit is due to lower contribution from its financial management solution (FMS) division and a loss reported by its payment aggregation solutions (PAS) division.

Quarterly revenue, however, grew 8% to RM34.05 million, from RM31.52 million in the first quarter of financial year 2014 (1QFY14).

In notes accompanying its results, Censof said the FMS segment recorded a lower profit of RM286,000 in 1QFY15, compared to a profit of RM1.43 million in 1QFY14; while the PAS segment recorded a loss of RM151,000, compared to a profit of RM7,000 in 1QFY14.

However, Censof said it recorded a profit before taxation (PBT) of RM7.39 million in 1QFY15, compared to RM6.72 million in 1QFY14, due to the higher contribution from the national single window (NSW) segment.

Increase in revenue was also contributed mainly by the NSW segment, which posted a 19.66% increase in PBT to RM7.79 million in 1QFY15, compared to RM6.51 million in 1QFY14; while revenue increased 9.86% to RM22.62 million in 1QFY15, compared to RM20.59 million in 1QFY14.

Industrial rubber hose manufacturer Wellcall Holdings Bhd's net profit increased 15% to RM8.48 million in the third quarter ended June 30, 2015 (3QFY15), from RM7.36 million a year earlier. Profit growth came on cheaper raw materials and a weaker ringgit.

In its quarterly report to Bursa Malaysia today, Wellcall (fundamental: 3.0; valuation: 2.1) said it registered lower revenue at RM37.94 million, from RM39.66 million.

Export-based Wellcall said profit growth came on "lower raw material cost, favourable foreign exchange gain and lower overheads", as production capacity usage increased. 
  
Wellcall declared a dividend of 2.3 sen a share for the quarter in review. The ex-date falls on Sept 11 this year.

Cumulative 9MFY15 net profit rose to RM28.38 million, from RM21.6 million a year earlier. Revenue increased to RM119.85 million, from RM108.93 million.

Muhibbah Engineering (M) Bhd reported an 8% drop in net profit to RM19.26 million or 4.17 sen a share for the second quarter ended June 30, 2015 (2QFY15), from RM20.93 million or 4.95 sen a share a year ago, in line with overall global economic environment.

Revenue for 2QFY15 fell 12% to RM410.34 million, from RM466.14 million in 2QFY14.

For the six months period (1HFY15), Muhibbah Engineering saw a 3.5% growth in net profit to RM42.55 million, from RM41.09 million a year ago.

This was despite revenue coming in lower by 10.1% at RM773.55 million in 1HFY15, compared with RM860.09 million in 1HFY14.

In a filing with Bursa Malaysia today, Muhibbah Engineering said its total outstanding secured order book in hand stood at RM2.1 billion, as at Aug 21, 2015.

Malaysia Steel Works (KL) Bhd (Masteel) has slipped into the red for two consecutive quarters. It announced a net loss of RM14.16 million or 5.94 sen per share for the second quarter ended June 30, due to lower selling price, sales volume and margin.

The steel manufacturer posted a net profit of RM10.1 million in the previous corresponding quarter, with earnings per share of 4.56 sen.

Its quarterly revenue fell 32.7% to RM242.2 million, from RM359.99 million a year ago.

For the cumulative six months (1HFY15), Masteel recorded a net loss of RM24.87 million or 10.43 sen per share, from a net profit of RM17.38 million or 7.85 sen per share in 1HFY14.

Revenue for the period came in 18.6% lower at RM567.59 million, against RM697.67 million a year earlier.

Destini Bhd saw its net profit for the second quarter ended June 30, 2015 (2QFY15) balloon to RM3.59 million, from RM1.23 million, due to maintenance, repair and overhaul (MRO) activities.

Earnings per share (EPS) expanded to 0.45 sen, from 0.17 sen last year.

Revenue for the quarter came in 38.3% higher at RM50.91 million, from RM36.82 million a year earlier, due to the same reason.

For the cumulative six months period (1HFY15), Destini has recorded a 3% increase in net profit to RM4.45 million or 0.55 sen per share, from RM4.32 million or 0.7 sen per share in 1HFY14.

Revenue strengthened to RM88.86 million, up 34.8% from RM65.89 million for the last corresponding period.

Looking forward, Destini expects its operating environment to remain challenging and competitive.

GD Express Carrier Bhd (GDex)'s net profit rose 57% to RM9.23 million in the fourth quarter ended June 30, 2015 (4QFY15), from RM5.88 million a year earlier. Profit growth came on higher demand for courier and logistics service in the electronic-commerce (e-commerce) segment.

In a filing to Bursa Malaysia today, GD Express (fundamental:3; valuation: 0.7) said revenue increased to RM51.83 million, from RM41.6 million.

“The improved performance was mainly due to increase in business volume, as a result of the increase in demand of the courier and logistics services for e-commerce business, during the current financial quarter/year under review,” GD Express said.

For the full year, net profit expanded to RM28.03 million, from RM23.39 million a year earlier; while revenue increased to RM196.76 million, from RM158.7 million. The company plans to pay a dividend of one sen a share for the quarter in review.

Heveaboard Bhd’s net profit almost doubled for the second quarter ended June 30, 2015 (2QFY15) to RM16.04 million, its highest ever quarterly profit since it had been listed on Bursa Malaysia in early 2005, compared with RM8.5 million a year ago.

The particleboard maker’s earnings per share surged to 15.82 sen for the quarter under review, from 8.99 sen per share previously.

Quarterly revenue grew by 4.2% to RM111.38 million in 2QFY15, from RM106.9 million in the previous corresponding quarter. The group is proposing a dividend per share of 0.5 sen.

During its six-month period (1HFY5), Heveaboard’s net profit soared 90.7% or RM30.09 million, compared with RM15.74 million. Revenue was higher by 7.63% at RM227.75 million for 1HFY15, against RM211.59 million in 1HFY14.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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