Feb18-Companies in the news Zelan, MAHB, KLK, Felda Global, Sona Petroleum, Axiata, Perdana Petroleum, BAT and SAM Engineering

by **Cals** Thu 18 Feb 2016, 02:07

Companies in the news

[size=28]Zelan, MAHB, KLK, Felda Global, Sona Petroleum, Axiata, Perdana Petroleum, BAT and SAM Engineering

By Billy Toh / theedgemarkets.com | February 17, 2016 : 11:59 PM MYT

KUALA LUMPUR (Feb 17): Based on corporate announcements and news flow today, companies likely to be in focus tomorrow (Thursday, Feb 18) include: Zelan, MAHB, KLK, Felda Global Ventures, Sona Petroleum, Axiata, Perdana Petroleum, BAT and SAM Engineering.

Zelan Bhd’s wholly-owned subsidiary Zelan Construction Sdn Bhd (ZCSB) has bagged a RM307.37 million contract from Zelan's 95%-owned unit Terminal Bersepadu Gombak Sdn Bhd to be the main contractor for the development of the Gombak Integrated Transport Terminal (GITT) in Selangor.

Zelan announced that Terminal Bersepadu Gombak has agreed to appoint LKSB to be the main contractor for the MRR2 works, while LKSB agrees to appoint ZCSB to carry out subcontract works related to the MRR2 works on such terms and conditions to be agreed upon between LKSB and ZCSB.

Zelan said the two contracts are expected to contribute positively to its earnings for the current financial year ending Dec 31, 2016 (FY16).

Malaysia Airports Holdings Bhd (MAHB) is targeting an earnings before interest, tax, depreciation and amortisation (EBITDA) of RM1.72 billion for financial year ending Dec 31, 2016 (FY16), which is 9.09% higher from the group's FY15 actual EBITDA of RM1.57 billion.

In its filing with Bursa Malaysia today, the group said the budgeted EBITDA consists of RM902.1 million from its Malaysia operation, and €180.9 million (RM813.9 million) from Istanbul Sabiha Gokcen International Airport (ISG) in Turkey.

MAHB expects 2016 passenger traffic for the group’s Malaysia operations to record 86 million movements or 2.5% above 2015 passenger numbers, while the Group’s Turkey operations’ growth remains robust as indicated by the recognition of being the fastest growing airport in Europe in FY15. Passenger traffic at ISG is expected to register double digit growth in 2016.

Earlier today, MAHB released its fourth quarter ended Dec 31, 2015 (4QFY15) financial results, which saw the airport operator post a net loss of RM42.9 million, from a net profit of RM577.73 million a year earlier, due to higher finance cost and foreign exchange losses.

Revenue came in higher at RM1.04 billion, compared to RM711.33 million in 4QFY14.

Full-year (FY15) net profit shrank to RM37.84 million, from RM663.37 million a year earlier, although revenue was higher at RM3.87 billion, compared to RM3.34 billion in FY14.

Kuala Lumpur Kepong Bhd's (KLK) net profit more than tripled to RM795.21 million or 74.7 sen per share for the first quarter ended Dec 31, 2015 (1QFY16), from RM214.2 million or 20.1 sen per share a year ago, mainly due to gains from disposing of a plantation land and better performance of its plantations and manufacturing sectors.

Revenue jumped 39.5% to RM4.34 billion, from RM3.11 billion in 1QFY15.

Excluding the disposal gain, the group anticipates satisfactory profit for financial year 2016.

Lembaga Tabung Haji (LTH) said its shareholding in Felda Global Ventures Holdings Bhd was a "long-term strategic investment".

In a statement today, the Islamic pilgrim fund’s board said its investment in plantation firm Felda Global's shares, formed a part of its core investments.

LTH noted that the drastic decline in the crude palm oil prices which have negatively impacted the plantation sector, is beyond their control.

According to Bloomberg data, LTH is the second largest shareholder in Felda Global, with a 7.79% stake.

Sona Petroleum Bhd, a special purpose acquisition company (SPAC), said the future prospect of the group is dependent on the outcome of its extraordinary general meeting next month.

That's when its proposal to acquire the Stag oilfield in offshore Western Australia for US$50 million (RM210.93 million) is expected to be put before its shareholders. The SPAC has until July 29 to complete its qualifying acquisition (QA). Failure to do so will see it liquidated and custodian account monies distributed to the respective shareholders.

As at end-December 2015, Sona Petroleum had RM527.55 million held in its custodian account.

Sona Petroleum narrowed its net loss to RM10.61 million in the fourth quarter ended Dec 31 2015 (4QFY15), from RM19.47 million a year ago, due to lower expenses incurred in evaluating the QA, which primarily comprised fees for technical, legal, finance and corporate advisory services and their direct expenses incurred for the due diligence exercise.

For the full year (FY15), the group also recorded a lower net loss of RM17.49 million, compared with RM28.47 million in FY14, due to the same reason. It has no operations or income-generating business at this point.

Axiata Group Bhd reported a 22% drop in fourth quarter net profit to RM467.24 million, from previous corresponding quarter of RM599.24 million, as the mobile telecommunication network provider registered weaker numbers from its Malaysian and Sri Lankan units.

Revenue was higher at RM5.36 billion versus RM4.81 billion in 4QFY14, due to higher contribution in Indonesia, Sri Lanka, Bangladesh and Cambodia and weaker ringgit.

Axiata's full-year (FY15) net profit rose to RM2.55 billion, from RM2.36 billion a year earlier.

Revenue grew to RM19.88 billion, compared to RM18.71 billion in FY14.

The company has declared a dividend of 12 sen a share for 4QFY15, bringing full-year dividends to 20 sen a share.

Perdana Petroleum Bhd plans to issue RM650 million worth of Islamic bonds or sukuk, according to RAM Rating Services Bhd.

In a note today, RAM said it had a preliminary rating of AAA(fg)/Stable for the 12-year sukuk of Perdana Petroleum, which offers oil and gas support services.

RAM said "the rating is premised on an irrevocable and unconditional financial guarantee extended by Danajamin Nasional Bhd".

"Subsequent issuances under the 12-year sukuk programme are conditional upon guarantees provided by guarantors. As such, the guarantor may vary for different tranches of this debt facility, throughout its tenure," RAM said.

According to Perdana Petroleum's statement to Bursa Malaysia, Dayang Enterprise Holdings Bhd owns 98.015% of Perdana Petroleum as at Dec 4, 2015.

Dayang had raised its Perdana Petroleum stake, following a takeover offer for the latter's shares.

Today, RAM said Perdana Petroleum's stand-alone credit strength reflected its synergies with Dayang. RAM also noted Perdana Petroleum's time-charter contracts, which provided steady contribution to the company.

British American Tobacco (Malaysia) Bhd (BAT), the country's largest tobacco company, saw its net profit increase 5.7% to RM196.12 million or 68.1 sen per share in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM185.53 million or 65.6 sen per share a year ago, on lower finance costs and operating expenses.

Revenue, however, declined 12.2% to RM1.06 billion, from RM1.21 billion in 4QFY14.

BAT declared a fourth interim dividend of 78 sen per share, amounting to RM222.71 million for the financial year ended Dec 31, 2015 (FY15), payable on March 24.

For the 12-month period (FY15), the group posted a 1.7% increase in net profit to RM913.31 million or RM3.19 per share, from RM898.13 million or RM3.16 per share in FY14, despite revenue falling 4.6% to RM4.58 billion, from RM4.8 billion a year ago.

However, BAT said its gross profit had declined 2.2% due to a 13.5% decline in domestic volumes, as a result of softer demand among consumers, brought on by the implementation of the goods and services tax and an impact of an unusually "large" November excise increase.

On prospects, BAT said the outlook for FY16 will largely depend on the massive excise increase, while recovery of the legal market will depend on enforcement efforts to reduce high illegal cigarette trade.

In November last year, the government had increased excise duty for cigarettes by more than 40%.

"The significant increase in the illegal trade will be the single most important challenge in 2016, for the legal tobacco industry," it said.

SAM Engineering & Equipment (M) Bhd saw its net profit rise 26.8% to RM14.65 million or 16.97 sen per share in the third quarter ended Dec 31, 2015 (3QFY16), from RM11.55 million or 13.7 sen per share a year earlier, on higher revenue in the equipment manufacturing segment.

Revenue was up 36.5% to RM155.03 million, from RM113.54 million a year ago.

Meanwhile, for the nine months ended Dec 31, 2015 (9MFY16), the company’s net profit surged 137.35% to RM45.69 million or 53.37 sen per share, from RM19.25 million or 23.82 sen per share.

Revenue jumped 43.6 to RM458.08 million, from RM319.03 million.

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