Aug25th-Companies in the news Boustead, Lii Hen, FGV, Eversendai, Panasonic, I-Bhd, Pos Malaysia, Dutch Lady, IOI, E&O, MRCB and Signature Int’l

by **Cals** Mon 24 Aug 2015, 23:32

Companies in the news
Boustead, Lii Hen, FGV, Eversendai, Panasonic, I-Bhd, Pos Malaysia, Dutch Lady, IOI, E&O, MRCB and Signature Int’l

KUALA LUMPUR (Aug 24): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Aug 25) could include: Boustead, Lii Hen, FGV ([You must be registered and logged in to see this image.] Financial Dashboard), Eversendai, Panasonic,I-Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Pos Malaysia, Dutch Lady, IOI, E&O, MRCB and Signature Int’l.
Boustead Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) second quarter net profit fell 92% from a year earlier as oil palm plantation and fuel-trading revenue declined. Higher minority interest also led to profit drop.
In a statement to the exchange today, Boustead (fundamental: 0.65; valuation: 2) said net profit fell to RM2.9 million in the second quarter ended June 30, 2015 (2QFY15) from RM34.6 million; revenue was lower at RM2.21 billion versus RM2.59 billion.
1HFY15 net profit dropped to RM3 million from RM91 million a year earlier. Revenue was lower at RM4.1 billion compared with RM5.09 billion. Despite the weaker 2QFY15 financials, Boustead plans to pay a dividend of five sen a share for the quarter.
During 1HFY15, the company said its plantation unit registered lower average crude palm oil (CPO) price at RM2,206 a tonne against RM2,605 a year earlier. Oil palm fresh fruit bunch (FFB) output fell to 480,853 tonnes.
Lii Hen Industries Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) recorded a 96% net profit rise for its second quarter ended June 30, 2015 (2QFY15) at RM12.66 million, from RM6.45 million a year earlier, as the furniture manufacturer benefited from a weaker ringgit versus the US dollar.
As export-based Lii Hen (fundamental:2.8; valuation:2.4) sells its products in US dollars, a weaker ringgit translates into higher income when its US dollar-denominated sales are converted into the Malaysian currency.
In a filing with Bursa Malaysia, Lii Hen reported revenue increased to RM138.28 million, from RM97.86 million, due to continuous market demand for the group’s products, especially its bedding items, besides the strengthening US dollar against the ringgit.
During 1HFY15, Lii Hen reported higher net profit at RM23.41 million, from RM14.71 million a year earlier. Revenue increased to RM250.36 million, from RM193.2 million.
For the quarter in review, the group declared a dividend of seven sen a share. Lii Hen said its shares would trade ex-dividend this Sept 7, while the payment date falls on Sept 23.
Lii Hen said positive market sentiment in US and the strengthening of US dollar against the ringgit would continue to enhance the group’s earnings.
Felda Global Ventures Holdings Bhd (FGV), the country's largest listed plantation company, couldn't escape slumping crude palm oil (CPO) prices, which saw its second-quarter net profit tumble 69.7% to RM46.08 million or 1.3 sen per share, from RM151.86 million or 4.2 sen per share a year ago.
It warned that the market remains "very uncertain" and given the difficult business environment, the group expects to see no recovery in the market in the second half of the year.
"CPO price is unlikely to rebound. Although CPO price has so far hit the bottom, further downside movement is still possible," FGV said in a filing with Bursa today.
FGV's revenue for the three months ended June 30, 2015 (2QFY15), however, rose 8.1% to RM4.19 billion, from RM3.87 billion in 2QFY14.
For the six months period (1HFY15), FGV's net profit fell 83.2% to RM49.66 million or 1.4 sen per share, as compared to RM295.49 million or 8.1 sen per share, due to lower earnings, mainly from palm-related segments.
Revenue also declined 6.5% to RM6.9 billion in 1HFY15, compared with RM7.38 billion in 1HFY14.
Eversendai Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit surge 93.2% on-year to RM14.1 million or 1.82 sen per share in the second quarter ended June 30, 2015 (2QFY15), due to higher value of contract executions, which saw its revenue almost doubling.
In the previous corresponding period, the steel structure player’s net profit only came in at RM7.3 million or 0.94 sen per share.
Revenue increased 91.1% to RM425.23 million compared to RM222.54 million in the second quarter of financial year 2014 (2QFY14).
Net profit for the cumulative first half of 2015 (1HFY15) rose 83.2% to RM33.5 million or 4.33 sen per share compared with RM18.29 million in 1HFY14, while revenue rose 82.7% to RM828 million from RM453.27 million previously.
The company said 67% of 1HFY15’s revenue was contributed by its businesses in the Middle East (including the Commonwealth of Independent States), 22% by Malaysian operations, with the remainder 11% from projects in India.
The company said its prospects remain positive based on its underlying fundamentals.
Panasonic Manufacturing Malaysia Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit rise 37% to RM31.8 million or 52 sen per share in its first quarter ended June 30, 2015 (1QFY16), primarily due to stronger sales seen in both its domestic and export markets for home appliances and fan products.
It registered a net profit of RM23.2 million or 38 sen per share in the same period a year ago, according to its filing to Bursa Malaysia today.
Revenue was up 6.7% to RM267.2 million from RM250.5 million in 1QFY15, mainly due to the same reason and the strengthening of the US dollar against the ringgit.
Panasonic said sales of home appliance products grew by 7% while fan sales rose by 6% compared to the previous year’s corresponding period.
Panasonic expects FY16 year to be challenging due to the increasing cost of living and the volatility of the ringgit that were making consumers cautious about spending.

Property developer I-Bhd’s profits plummeted by 56.11% to RM8.518 million for its second quarter ending June 30, 2015 (2QFY15) from RM19.406 million a year ago due to better margins for its property products in 2014.
The group’s revenue for the quarter also dropped by 25.37% to RM52.725 million from RM70.649 million.
For the six months ended June 30, 2015 (1HFY15), net profit also dipped by 26.48% to RM18.753 million from RM25.509 million a year ago.
However, revenue showed a 10.82% increase to RM128.071 million from RM115.563 million.
Its financial statements filed with Bursa yesterday showed that profit before tax from its biggest income contributor the property development segment fell 34% to RM21.045 million in 1HFY15.
Pos Malaysia Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) posted a 16.1% decline in net profit to RM22.74 million or 4.23 sen per share for the first financial quarter ended June 30, 2015 (1QFY16), from RM27.11 million or 5.05 sen per share a year ago, due to higher operating expenses.
This was despite revenue for the quarter increasing 5.8% to RM390.37 million in 1QFY16, from RM368.8 million in 1QFY15, primarily driven by the trans-shipment business from the mail segment.
In a filing with Bursa today, Pos Malaysia said it registered higher expenses by RM26.8 million in 1QFY16, compared with the preceding period, primarily due to staff and transportation costs.
"Staff cost increase corresponds with the overall increase in revenue.
"The other significant increase is from transportation cost primarily involving higher international volume in line with the group’s focus in capitalising the global trend of cross border e-commerce merchandise transactions," it said.
Going forward, Pos Malaysia said the group's courier, express and parcel business remains the key driver of the group's revenue growth.
Dutch Lady Milk Industries Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s net profit doubled to RM48.78 million or 76.2 sen per share for the second quarter ended June 30, 2015 (2QFY15) from RM24.27 million or 37.95 sen per share a year ago.
Dutch Lady attributed the higher earnings to improved revenue and lower raw material prices.
Revenue for 2QFY15 also rose 3.8% to RM278.29 million from RM268.23 million in 2QFY14, mainly contributed by the relaunch of Dutch Lady Children Formula Milk, but slightly offset by the goods and services tax (GST) implementation impact.
For the six-month period (1HFY15), Dutch Lady's net profit expanded 39% to RM65.9 million or 102.8 sen per share against RM47.34 million or 73.95 sen per share in 1HFY14, largely attributed to favourable raw material prices.
However, revenue for 1HFY15 fell 4.2% to RM475.18 million from RM495.91 million a year ago due to the planned phasing of the relaunch of new products in 1QFY15, rundown of activities prior to the relaunch and implementation of the GST.
Lower contribution from the plantation segment has trimmed IOI Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s net profit in the fourth quarter ended June 30, 2015 (4QFY15), which fell 60.8% to RM159.7 million or 2.52 sen per share, from RM407.5 million or 6.42 sen per share in the same period a year ago.
Revenue for the quarter, however, was a marginal 3.9% higher at RM2.94 billion, compared with RM2.83 billion a year ago, its filing to Bursa Malaysia today showed.
Despite weaker earnings, the plantation group declared a second interim dividend of 4.5 sen per share for the financial year ending Dec 31, (FY15) payable on Sept 18, bringing its total dividend declared this year to 9 sen (FY14: 20 sen).
Its filing showed that plantation profit declined 26% to RM235.8 million for 4QFY15, compared with RM318.6 million last year, due to lower average CPO price of RM2,197 per million tonne (MT), as compared to RM2,661 per MT last year.
Its resource-based manufacturing segment also posted a 4% decline in profit to RM99.1 million, versus RM103.7 million last year.
For the cumulative 12 months, IOI Corp's net profit plunged 95% to RM168.1 million or 2.64 sen per share, from RM3.37 billion or 52.93 sen per share last year, primarily dragged by lower profits in its plantation segment — due to lower crude palm oil (CPO) prices — and resource-based manufacturing segment.
Eastern and Oriental Bhd (E&O) saw its net profit increase 22.7% on-year to RM23.26 million or 1.9 sen per share in the first quarter ended June 30, 2015 (1QFY15), as compared to RM18.96 million or 1.56 sen per share previously, on the sale of a landbank along Jalan Sungai Besi, Kuala Lumpur.
In a filing with Bursa today, E&O said revenue in 1QFY15 declined 46.9% to RM68.89 million, as compared to RM129.74 million in the first quarter of financial year 2014 (1QFY14).
In notes accompanying its results, the company said its profit before tax in 1QFY15 declined 25.9% to RM24.6 million, as compared to RM33.21 million in 1QFY14, due to lower revenue recognised and higher finance costs, which was partly mitigated by higher contributions from share of results of an associate and share of results of joint ventures (JV).
Malaysian Resources Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s (MRCB) net profit halves to RM60.10 million or 3.36 sen per share for the second quarter ended June 30, 2015 (2QFY15) from RM118.53 million or 7.15 sen per share a year ago, primarily on higher expenses and lower other operating income.
Expenses rose about 42.4% to RM444.54 million, while other operating income came in 71.7% lower at RM49.61 million; revenue was, however, 62.8% higher at RM530.28 million compared with RM325.69 million in the same period last year.
For the six-month period (1HFY15), net profit jumped 128.3% to RM297.97 million from RM130.52 million in 1HFY14, while cumulative revenue grew 76.2% to RM934.47 million from RM530.33 million last year.
“The strong revenue growth and higher profit before taxation for the six months was attributable to the completion of the Q Sentral development and the sale of Platinum Sentral and also other ongoing development projects, including the Sentral Residences and 9 Seputeh,” said MRCB.
Signature International Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s net profit tumble 62% to RM3.87 million in the fourth quarter ended June 30, 2015, (4QFY15) from RM10.16 million last year, mainly on lower revenue.
Revenue for the quarter declined 17.9% to RM54.96 million compared with RM66.91 million in 4QFY14, mainly due to lower revenue contribution from kitchen and wardrobe (-36%, mainly due to drop in project revenue), and distribution of white goods, said the kitchen system designer and distributor’s filing to Bursa Malaysia today.
For its full year ended June 30, 2015 (12MFY15), Signature (fundamental: 2.3, valuation: 2.1) delivered a net profit of RM36.11 million, up 87.8% from RM19.23 million last year, largely due to higher revenue and increased margins, and bad debts written back of RM5.8 million.
Revenue for the period was up 52.7% at RM272.93 million, from RM178.74 million the previous year; its project division remains the main contributor to revenue, where more than 60% of the increase is from the job delivered and billed in the current financial year.
Moving towards a new financial year 2016, the Group is expected to continue its growth in all business segments, locally and internationally.
(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. )