Feb 24th-Companies in the news HLB, HLFG, HLCap, Nestle, MSM, Yong Tai, Unisem, RGB, Lay Hong, Tanjung Offshore, Mitrajaya, Tan Chong, Fiamma, Kian Jo

• Companies in the news
  

HLB, HLFG, HLCap, Nestle, MSM, Yong Tai, Unisem, RGB, Lay Hong, Tanjung Offshore, Mitrajaya, Tan Chong, Fiamma, Kian Joo, MMC Corp and Gas Malaysia

By The Editor / TheEdge   | February 24, 2016 : 12:12 AM MYT   
KUALA LUMPUR (Feb 23): Based on corporate announcements and news flow today, companies likely to be in focus tomorrow (Wednesday, Feb 24) include: Hong Leong Bank (HLB), Hong Leong Financial Group (HLFG), Hong Leong Capital (HLCap), Nestle, MSM, Yong Tai, Unisem, RGB, Lay Hong, Tanjung Offshore, Mitrajaya, Tan Chong, Fiamma, Kian Joo, MMC Corp and Gas Malaysia.
Hong Leong Bank Bhd (HLB), the country's sixth-largest lender, saw its net profit in the second quarter ended Dec 31, 2015 (2QFY16) fallen 37.6% to RM344.08 million or 19.43 sen per share, from RM551.6 million or 31.24 sen per share a year ago, on higher operating expenses, higher charge on allowance for impairment losses on loans, advances and financing, coupled with lower share of profit from associated company.
 
A filing with Bursa Malaysia showed that its quarterly revenue, however, rose 4.9% to RM1.07 billion, from RM1.02 billion in 2QFY15.
 
HLB has proposed an interim single tier dividend of 15 sen per share, payable March 24. EX-date and entitlement date fall on March 8 and March 10 respectively, according to a separate filing.
 
For the six-month period ended Dec 31, 2015 (1HFY16), HLB's net profit dipped 23% to RM847.04 million or 47.83 sen per share, from RM1.1 billion or 62.26 sen per share a year earlier. Accumulative revenue rose 2.94% to RM2.1 billion, from RM2.04 billion in 1HFY15.
In a statement today, Hong Leong Bank's group managing director cum chief executive officer Domenic Fuda said excluding the one-off cost of RM172 million from the mutual separation scheme (MSS) in December 2015, the group's business as usual net profit for 1HFY16 would have been RM978 million, underpinned by lower write-backs of loan impairment allowances coupled with lower contribution from the associates.
Hong Leong Financial Group Bhd (HLFG) saw its net profit fallen 37.8% to RM263.45 million or 24.5 sen a share in the second financial quarter ended Dec 31, 2015 (2QFY16), from RM423.84 million or 40.5 sen a share a year ago, mainly due to lower contribution from its banking and insurance division.
 
Revenue, however, rose 2% to RM1.17 billion, from RM1.14 billion in 2QFY15.
 
The drop on quarterly net profit dragged down earnings for the six-month period ended Dec 31, 2015 (1HFY16) by 20.3% to RM650.33 million or 61.2 sen per share, from RM815.99 million or 77.9 sen in 1HFY15, mainly due to lower contribution from the banking division.
 
Revenue rose 3.8% to RM2.31 billion, from RM2.23 billion in 1HFY15.
 
In a statement today, the financial group said excluding Hong Leong Bank Bhd's one-off mutual separation scheme cost of RM172 million, it would have a pre-tax profit of RM1.35 billion in 1HFY16.
 
The group also said its insurance contribution continued to grow with pre-tax profit increasing 17.7% year-on-year to RM131.1 million.
Hong Leong Capital Bhd's (HLCap) net profit for the second quarter ended Dec 31, 2015 (2QFY16) jumped 41.2% to RM22.31 million or 9.25 sen a share, from RM15.8 million or 6.55 sen a share a year ago, due to higher contribution from its investment banking and stockbroking segment.
 
Revenue rose 13.06% to RM71.96 million, from RM63.65 million in 2QFY15.
 
In a filing with Bursa Malaysia today, HLCap said the investment banking and stockbroking segment recorded a higher profit before tax (PBT) of RM20.4 million for 2QFY16, compared with RM14.5 million a year ago, mainly due to higher contribution from its debt markets and stockbroking divisions, offset by lower contribution from its treasury and markets division.
 
"Fund management and unit trust management recorded a marginal higher PBT of RM60,000 in 2QFY16, compared with RM55,000 in 2QFY15, mainly due to higher net contribution from management fee income," it added.
 
For the six-month period ended Dec 31, 2015 (1HFY16), HLCap's net profit increased 11.07% to RM37.92 million or 15.72 sen per share, from RM34.14 million or 14.18 sen per share in 1HFY15, mainly due to higher contribution from investment banking and stockbroking segment, offset by lower contribution from its fund management and unit trust management segment.
 
Revenue was up 3.59% at RM131.13 million, versus RM126.59 million in 1HFY15.
 
Nestle (M) Bhd's fourth quarter net profit rose 2% to RM99.79 million, from RM98.3 million a year earlier. The food and beverage manufacturer said profit rise came on revenue growth during the fourth quarter ended Dec 31, 2015 (4QFY15).
 
In a statement to Bursa Malaysia today, Nestle said revenue was higher at RM1.2 billion versus RM1.11 billion the year before, on domestic and export sales.
"From profit perspective, gross profit increased from RM377 million to RM460 million, a growth of 21.9% versus the corresponding period last year. Main drivers for this good profit development were the turnover increase, favourable trends in most of the raw materials, as well as diligent cost management throughout the value chain.
Full-year (FY15) net profit climbed to RM590.73 million, from RM550.38 million a year earlier. Revenue was higher at RM4.84 billion, compared to RM4.81 billion in FY14.
 
Nestle has declared dividends of RM1.30 a share for 4QFY15, which is payable on June 2. The dividends comprise a final payout of RM1.10 plus a special 20 sen portion.
 
Sugar refiner MSM Malaysia Holdings Bhd's net profit fell 11% to RM66.73 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM74.96 million a year earlier, as gross profit declined on higher cost of sales.
 
Higher taxes also contributed to its net profit drop, MSM told Bursa Malaysia today. MSM said revenue, however, improved to RM663.97 million, from RM628.07 million in 4QFY14.
 
MSM is the sugar manufacturing arm of the Federal Land Development Authority.
 
According to MSM's income statement, cost of sales rose to RM544.74 million from RM483.57 million while taxes increased to RM25.5 million from RM25.34 million.
 
For the full year (FY15), MSM said net profit climbed to RM280.76 million, from RM257.01 million a year earlier. Revenue rose to RM2.31 billion, from RM2.28 billion in FY14.
Garment-maker-turned-property developer Yong Tai Bhd will kick off its Impression City development in Melaka in the third quarter of this year, with the first phase carrying an estimated gross development value (GDV) of RM1.1 billion.
 
Spanning 117 acres, the 10-year project will be developed in 11 phases whose total GDV is RM5.4 billion, and is expected to generate a profit margin of 20%, said Yong Tai executive director Boo Kuang Loon.
 
Out of the 117 acres, about 17 acres will host the Impression Melaka performing arts stadium, a derivative of a popular series of attractions in China, which will be the centrepiece of Impression City.
Unisem (M) Bhd’s net profit jumped 185% to RM60.42 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM21.19 million a year earlier. Export-based Unisem said profit rose on higher semionductor sales, amid a weaker ringgit against the US dollar.
 
Unisem announced to Bursa Malaysia today that its revenue rose to RM351.97 million, from RM285.38 million.
 
"The increase in revenue for the current quarter and financial year to date was mainly attributable to greater demand for the products and services of the group and an appreciation in the US dollar against the ringgit and US dollar against reminbi, as compared to the rates that prevailed in the corresponding quarter/period a year ago.
 
"The improvement in net profit for the current quarter and financial year to date was due to increased revenue, better contribution from our wafer bumping, and advanced package operations and lower interest expense," Unisem said.
 
For FY15, Unisem said its net profit rose to RM155.54 million, from RM68.42 million a year earlier; while revenue increased to RM1.26 billion, from RM1.04 billion.
RGB International Bhd’s net profit rose 42% to RM4.26 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM2.99 million a year earlier, on higher electronic gaming machine sales.
 
In a statement to Bursa Malaysia today, RGB said revenue climbed to RM64.73 million, from RM56.25 million. The company said its bottom line also gained, "due to favourable impact from foreign exchange rates."
 
FY15 net profit increased to RM20.86 million, from RM18.53 million a year earlier; while revenue rose to RM233.01 million, from RM214.65 million.
Lay Hong Bhd reported a 34.2% fall in net profit to RM4.15 million or 8.06 sen per share in the third quarter ended Dec 31, 2015 (3QFY16), due to lower egg prices and sales volume.
 
In contrast, the egg producer achieved a net profit of RM6.3 million or 12.48 sen per share in the previous corresponding quarter.
 
The egg producer said lower quantity of eggs sold and lower egg prices had impacted its integrated livestock farming segment, while the retail supermarket segment was hurt by lower consumer spending, following the implementation of goods and services tax.
 
The company's quarterly revenue fell by 7.8% to RM163.4 million, from RM177.2 million in 3QFY15.
 
In a filing to Bursa Malaysia today, Lay Hong said the integrated livestock farming segment had declined 7.61% to RM130.5 million, from RM141.2 million, while the retail supermarket segment fell by 8.45% to RM32.92 million, from RM35.95 million
 
For the cumulative nine months (9MFY16), Lay Hong's net profit was up 8.03% at RM15.28 million or 29.11 sen per share, from RM14.15 million or 28.28 sen in 9MFY15.
Tanjung Offshore Bhd posted a net loss of RM26.35 million in the fourth quarter ended Dec 31, 2015 (4QFY15), as the oil and gas support services provider registered lower revenue and higher operating expenses.
 
In a filing with Bursa Malaysia today, Tanjung Offshore said its net loss compared to a net profit of RM690,000 a year earlier.
 
Tanjung Offshore said revenue fell to RM18.81 million, from RM19.41 million, "as most contracts were still at the bidding stages."
 
Full-year net loss stood at RM76.26 million, compared with a net profit of RM1.06 million a year earlier. Revenue fell to RM60.68 million, from RM107.35 million.
Mitrajaya Holdings Bhd has been appointed as the developer for the 1Malaysia Civil Servant Housing Development (PPA1M) by Putrajaya Homes Sdn Bhd, worth RM157.32 million.
 
In a filing with Bursa Malaysia today, Mitrajaya said its unit Pembinaan Mitrajaya Sdn Bhd had yesterday (Feb 22) accepted the award from Putrajaya Homes for the proposed PPA1M development in Putrajaya.
 
According to Mitrajaya, it was tasked to construct and complete 800 units of PPA1M public apartments, inclusive of two blocks of multi-level car park and common facilities at Precint 17, Putrajaya.
 
The contract is for duration of 36 months and is expected to be completed by Feb 22, 2019.
Tan Chong Motor Holdings Bhd, which distributes Nissan and Renault vehicles, saw its net profit fall 40.3% to RM5.18 million for the fourth quarter ended Dec 31, 2015 (4QFY15), from RM8.67 million in 4QFY14, due to a declining ringgit against the US dollar and intense competition.
 
This is despite the group’s revenue rising 19.5% to RM1.51 billion, from RM1.26 billion a year ago.
 
The group’s net profit for full year FY15 also fell 29.3% to RM74.87 million, from RM105.85 million in FY14. Its revenue, however, went up 20.1% to RM5.72 billion, from RM4.76 billion in FY14.
 
In a filing with Bursa Malaysia today, Tan Chong said the challenging business environment marked by intense competition, coupled with the declining ringgit against the US dollar, had impacted its bottom-line.
Lower contribution from the property development segment has dragged Fiamma Holdings Bhd's net profit down by almost 67% to RM2.57 million or 1.89 sen per share for the first financial quarter ended Dec 31, 2015 (1QFY16), from RM7.77 million or 5.68 sen per share a year ago.
 
Revenue also declined 18.4% to RM62.72 million, from RM76.89 million in 1QFY15, according to a filing to Bursa Malaysia today
 
The trading segment's net revenue dropped 5.6% to RM57.78 million, compared to the RM61.2 million recorded in 1QFY15. Consequently, this segment recorded a lower PBT of RM4.63 million, against a PBT of RM6.70 million in 1QFY15, representing a decrease of 30.9%.
 
Meanwhile, the property development segment recorded a net revenue of RM3.7 million against RM15.27 million in 1QFY15, down 75.8%. This segment recorded a loss before taxation of RM880,000 against a PBT of RM5.08 million a year ago.
Kian Joo Can Factory Bhd’s net profit shrunk 34% year on year (y-o-y) to RM23.48 million or 5.29 sen per share in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM35.68 million or 8.03 sen per share a year ago.
 
The aluminium can maker attributed the narrower profit margin to foreign exchange loss, goodwill write-off, as well as higher operating and finance costs.
 
In a filing with Bursa Malaysia, Kian Joo said revenue, however, rose 30.5% to RM460.34 million in 4QFY15, from RM352.72 million in the fourth quarter of financial year 2014 (4QFY14).
 
For the full financial year ended Dec 31, 2015 (FY15), Kian Joo’s net profit rose 8.6% to RM131.31 million or 29.56 sen per share, compared to RM120.91 million or 27.22 sen per share in financial year 2014 (FY14). Revenue increased 20.3% to RM1.6 billion, from RM1.33 billion in FY14.
MMC Corp Bhd's net profit fell 25% to RM149.95 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM199.15 million a year earlier, as revenue fell after the deconsolidation of Malakoff Corp Bhd's income.
 
MMC had last year cut its stake in power producer Malakoff to 37.6%, from 51%, upon completion of Malakoff's initial public offering (IPO).
 
Today, MMC said its 4QFY15 revenue dropped to RM955.65 million, from RM2.3 billion a year earlier.
 
Full-year net profit rose to RM1.64 billion, from RM492.93 million a year earlier. Revenue was however lower at RM5.05 billion, versus RM8.77 billion.
Gas Malaysia Bhd saw its net profit fall 56% to RM10.27 million or 0.8 sen a share for the fourth quarter ended Dec 31, 2015 (4QFY15), from RM23.34 million or 1.82 sen a share a year ago, weighed down by additional billing for price differential between market prices and regulated prices for liquefied natural gas volume supplied from its gas supplier.
 
Revenue for the quarter, however, doubled to RM1.17 billion, from RM780.5 million in 4QFY14, due to higher volume of gas sold and the upward revision of natural gas tariff, it told the exchange in a filing today.
 
Gas Malaysia also proposed a final dividend of 4.77 sen for the financial year ended Dec 31, 2015 (FY15), amounting to RM61.25 million, subject to the approval of the shareholders at the forthcoming annual general meeting.
 
For FY15, its net profit fell 36.7% to RM106.16 million or 8.27 sen per share, from RM167.63 million or 13.06 sen per share, dragged down by lower gross contribution resulting from margin compression and the above additional billing for price differential between market prices and regulated prices.
 
Revenue gained 30.7% to RM3.62 billion, from RM2.77 billion in FY14, underpinned by higher volume of gas sold and the upward revisions of natural gas tariff effective Nov 1, 2014 and July 1, 2015.