KUALA LUMPUR (May 24): Here is a brief look at some corporate announcements and news flow on Tuesday (May 24) involving Serba Dinamik Holdings Bhd, KNM Group Bhd, Kuala Lumpur Kepong Bhd (KLK), Sime Darby Bhd, KLCCP Stapled Group, TSH Resources Bhd, UMW Holdings Bhd, Malakoff Corp Bhd, Farm Fresh Bhd, Boustead Heavy Industries Corp Bhd (BHIC), Menang Corp (M) Bhd, Pekat Group Bhd, Perak Corp Bhd, GDEX Bhd, Nexgram Holdings Bhd, Dagang NeXchange Bhd (DNeX), Pestech International Bhd and KAF International Bank Bhd.
Serba Dinamik Holdings Bhd has been slapped with a civil suit from Malaysian Trustees Bhd — trustees of the former’s RM100 million Islamic Commercial Papers (ICP) that it has defaulted on. Malaysian Trustees is seeking a declaration that a dissolution event has occurred on the ICP, together with an order to compel Serba Dinamik to pay the outstanding ICP amount with compensation for late payment. Malaysian Trustees is also seeking to execute a sale agreement with Serba Dinamik to acquire from the beleaguered oil and gas outfit, its entire beneficial interest in the shariah-compliant business of Amanahraya Investment Management Sdn Bhd (ARIM), as part of the agreement under the dissolution of the ICP.
KNM Group Bhd’s indirect unit Deutsche KNM GmbH entered into a conditional sale, purchase and transfer agreement with GPR Siebzigste Verwaltungsgesellschaft mbH (GSV), to sell the former’s entire stake in Borsig GmbH — a German-based process equipment manufacturer — to the latter for €220.8 million (RM1.03 billion). KNM is expected to make an estimated loss of RM490.55 million from the disposal.
Kuala Lumpur Kepong Bhd’s (KLK) posted a net profit of RM546.57 million for the second quarter ended March 31, 2022 (2QFY22), up 11.44% from RM490.44 million a year earlier, lifted by its plantations and manufacturing segments. Its quarterly revenue climbed 41.56% to RM6.38 billion from RM4.51 billion. The group also declared an interim dividend of 20 sen per share, to be paid on Aug 2.
Sime Darby Bhd’s net profit in the third quarter ended March 31, 2022 (3QFY22) declined by 18.67% to RM244 million from RM300 million a year ago, as the group’s core businesses of industrial and motors were impacted by Covid-19 related disruptions in both China and Australasia. Its quarterly revenue slid by 4.07% to RM10.57 billion, compared to RM11.02 billion a year prior.
KLCCP Stapled Group reported a net profit of RM161.44 million for the first quarter ended March 31, 2022 (1QFY22), up 10.48% from RM146.12 million in the same quarter last year, amid a rebound in business activities. The group, comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), saw revenue grow 13.93% to RM321.71 million, from RM282.37 million. It declared a dividend of eight sen per stapled security, 14.3% higher than the year-ago quarter's seven sen payout.
TSH Resources Bhd's profit surged to RM101.86 million for the first quarter ended March 31, 2022 (1QFY22), over 6.5 times the RM15.57 million it recorded in the same quarter last year, thanks to higher palm product prices and gains from the disposal of an estate and palm oil mill, partially offset by lower sales volume. The planter's revenue grew 38.21% to RM337.35 million from RM244.08 million, whereby 92.57% of it was contributed by its palm products segment. The group did not declare any dividend.
UMW Holdings Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) grew 26.82% to RM101.21 million, from RM79.8 million in the previous year's corresponding quarter, as a stronger contribution from its automotive and equipment segments lifted the group's revenue 28.58% to RM3.65 billion, from RM2.95 billion.
Malakoff Corp Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) fell by 15.82% year-on-year (y-o-y) to RM50.88 million, from RM60.44 million, due to lower contribution from Tanjung Bin Energy Sdn Bhd (TBE), resulting from the plant outage caused by low-pressure turbine blade failure, coupled with higher depreciation charges. Its quarterly revenue grew 39.42% to RM1.88 billion, from RM1.35 billion, primarily due to higher energy payments recorded from Tanjung Bin Power Sdn Bhd and TBE, given the higher Applicable Coal Price during the period under review.
Farm Fresh Bhd's net profit for the fourth quarter ended March 31, 2022 (4QFY22) surged 50.63% to RM17.68 million from RM11.74 million a year earlier, on a higher gross profit margin — in line with both an increase in sales, as well as a price increase of its chilled ready-to-drink (RTD) milk products and ambient RTD products by an average of 5%. Quarterly revenue was marginally up by 0.44% to RM128.07 million, from RM127.51 million.
Boustead Heavy Industries Corp Bhd (BHIC) returned to the black for the first quarter ended March 31, 2022 (1QFY22) with a net profit of RM6.51 million versus a net loss of RM916,000 a year ago, mainly attributed by higher revenue from its maintenance, repair and overhaul (MRO) activities. Quarterly revenue almost doubled to RM37.46 million from RM18.94 million, derived mainly from submarine contracts and other defence-related MRO projects.
Menang Corp (M) Bhd’s net profit for the third quarter ended March 31, 2022 (3QFY22) surged 187.89% or more than two-fold to RM4.54 million from RM1.58 million a year ago, despite posting a dip in revenue of 2.21% to RM21.51 million, from RM21.99 million. It said that the receipt of late payment interest of RM1.54 million from Lembaga Lebuhraya Malaysia (LLM) in respect to the compulsory acquisition of Klang Land by the government, lower interest expenses of RM1.3 million due to loan repayments made and reversal of over provision of prior years’ income tax of RM0.95 million, carried the group’s net profit.
Pekat Group Bhd posted a net profit of RM4.4 million for the first quarter ended March 31, 2022 (1QFY22) from RM4.54 million for the same period last year. Quarterly revenue increased by 9.2%, to RM45.5 million from RM41.7 million previously, mainly due to higher revenue from the trading segment.
Perak Corp Bhd has narrowed its net loss for the first quarter ended March 31, 2022 (1QFY22) to RM1.2 million from RM6.29 million a year ago, due to profit from the sale of land by a former subsidiary under its property development segment. Quarterly revenue saw a slight decrease of RM32.2 million in 1QFY22, compared with RM33.67 million in 1QFY21, amid lower revenue generated from the port and logistics segment.
GDEX Bhd posted a net loss of RM1.9 million in the first quarter ended March 31, 2022 (1QFY22), as compared to a net profit of RM5.58 million a year prior, amid tough competitions at home and higher operating costs. The group reported a 13.16% decline in revenue during the quarter to RM91.89 million, compared with RM105.81 million a year ago, amid lower contributions from its courier services segment.
Nexgram Holdings Bhd — via its unit NEG Auto Group Sdn Bhd — on May 18 has entered into a China-Malaysia new-energy-vehicle (NEV) cooperation agreement with Shenzhen Hengsheng Energy Management Co Ltd, a Chinese firm involved in the manufacturing of NEVs and charging piles, to promote industrial development of NEV design and parts, as well as manufacture NEV parts and vehicles in Malaysia. The agreement will remain in force up to Dec 31, 2030.
Dagang NeXchange Bhd (DNeX) inked a memorandum of understanding (MoU) with Accenture Solutions Sdn Bhd on Tuesday (May 24) to create joint offerings with products, services and solutions that drive data-led transformation in Malaysia's public services and government-linked companies (accelerate digital transformation for Malaysia's public services).
Pestech International Bhd has inked a memorandum of understanding (MoU) with Hydrogène De France SA (HDF Energy) to collaborate on green hydrogen production from hydropower plants in Cambodia and Malaysia. Under the MoU, Pestech will initiate its commitment to contributing toward sustainable development through participation in green renewable initiatives.
KAF Investment Bank Bhd has appointed Rafiza Ghazali as the chief executive officer (CEO) designate in leading its Digital Islamic Bank. The Malaysian financial services group said Rafiza will initially be joining KAF Investment Bank as part of the digital bank project team, pending the incorporation process of the digital bank entity.