May18-Companies in the news UMWOG, Malayan Flour Mills, Zelan, Carlsberg, APM Automotive, Top Glove, Amway, Boustead Plantations, Lion Corp and Ann Jo

by **Cals** Wed 18 May 2016, 01:56

Companies in the news

[size=28]UMWOG, Malayan Flour Mills, Zelan, Carlsberg, APM Automotive, Top Glove, Amway, Boustead Plantations, Lion Corp and Ann Joo

By Billy Toh / theedgemarkets.com | May 17, 2016 : 10:07 PM MYT

KUALA LUMPUR (May 17): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, May 18) could include the following: UMWOG, Malayan Flour Mills, Zelan, Carlsberg, APM Automotive, Top Glove, Amway, Boustead Plantations, Lion Corp and Ann Joo.

UMW Oil & Gas Corp Bhd said it is tendering for 22 contracts this year, worth US$628 million (RM2.52 billion), comprising domestic and international jobs in Asia and the Middle East.

Its president Rohaizad Darus said 48% of the tenders are for domestic jobs, while the balance 52% consist of international jobs. Two of the international contracts it is tendering for are located in the Middle East, while three are located in Vietnam.

Malayan Flour Mills Bhd's (MFM) net profit for the first quarter ended March 31, 2016 more than tripled to RM17.63 million or 3.2 sen a share from RM5.4 million or one sen a share a year ago.

MFM attributed the increase in profitability to higher margins in both its flour and poultry integration segments.

Revenue rose 19.9% to RM666.84 million from RM555.06 million due to higher volume of flour and trading grains, as well as a higher live bird selling price in its poultry segment.

Meanwhile, MFM's Indonesian joint venture business reported positive results in its bottom line for the first quarter, due to a relative stable foreign exchange fluctuation. MFM owns a 30% stake in PT Bungasari Flour Mills Indonesia, an associate to the group which began operation in August 2014.

At a media briefing after the group's annual general meeting today, the flour mills operator's managing director Teh Wee Chye said that despite the favourable results, the prospects for the entire fiscal year still remains to be seen.

Zelan Bhd is tendering for contracts worth RM4 billion this year, comprising local infrastructure projects, as the company winds down its overseas operations.

Despite the current challenging economy, Zelan is still participating in tenders for local infrastructure projects, its managing director Adnan Mohammad said.

Carlsberg Brewery Malaysia Bhd's net profit rose 33.3% to RM62.94 million for its first quarter ended March 31, 2016 from RM47.23 million a year ago, due to higher volume and contributions from both its Malaysian and Singapore operations.

Revenue came in higher by 6.1% at RM455.72 million from RM429.45 million.

Its managing director Henrik Juel Andersen said the aggressive excise tax increase in Malaysia on March 1 had dampened the group's outlook for the year.

He told the reporters the group is currently evaluating the possibility of increasing its product prices this year.

APM Automotive Holdings Bhd's net profit for first quarter ended March 31, 2016 fell 47.6% to RM9.34 million from RM17.83 million a year ago, mainly due to lower revenue and higher imported raw material cost from a strong US dollar.

Revenue declined 13.24% to RM276.1 million from RM318.3 million, largely due to lower take-off from original equipment manufacturers as a result of softer vehicle sales.

On its prospects, APM said the outlook for 2016 is likely to remain challenging for the auto sector.

In a down cycle, operating margins are squeezed on the back of lower volumes and higher costs, it said.

Top Glove Corp Bhd's proposed secondary listing on the Main Board of the Singapore Stock Exchange (SGX-ST) has been approved by the Securities Commission Malaysia, subject to the secondary listing of and quotation for the entire issue share capital of Top Glove on SGX-ST being fully fungible (exchangeable), according to a filing with Bursa Malaysia today.

On May 9, Top Glove told the exchange that they had gotten the approval of the SGX-ST to submit Section B of the Listing Admissions Pack to the Singaporean regulator.

Amway (Malaysia) Holdings Bhd's net profit for the first quarter ended March 31, 2016 halved to RM18.05 million from RM36.84 million a year ago, due to lower sales and higher import costs as a result of the weaker ringgit, as well as higher sales incentive provisions and operating expenses.

Revenue for the first quarter came in 5% lower at RM305.94 million as compared to RM321.99 million previously, due mainly to a strong buy up in 1QFY15 ahead of the implementation of goods and services tax on April 1, 2015.

The group declared a dividend of 5 sen per share, to be paid on June 15. The ex-date for the dividend is June 1.

Amway Malaysia managing director Paul Yee said in a statement that the investment in sales and marketing programmes, together with the weaker ringgit and a higher transfer price, is expected to have an adverse impact on its operating margin for 2016.

Boustead Plantations Bhd's net profit surged more than five times to RM42.59 million in the first quarter ended March 31, 2016 from RM7.35 million a year earlier, primarily due to gains realised on disposal of lands amounting to RM34.6 million.

Revenue rose 3.9% to RM136.98 million from RM131.89 million.

The group declared a first interim dividend of three sen per share for the year ending Dec 31, 2016, payable on June 28.

Moving forward, Boustead Plantations vice chairman Tan Sri Lodin Wok Kamaruddin said crop production for the group is expected to be impacted by tough conditions.

Lion Corp Bhd's net loss narrowed to RM71.06 million in the third quarter ended March 31, 2016 from RM105.93 million a year earlier, on higher foreign exchange gain of RM40 million.

Revenue plunged 74.38% to RM146.42 million from RM571.47 million, due to lower selling price and sales volume of hot rolled coils.

For the nine months ended March 31, 2016, its net loss was at RM365.09 million, up from RM315.17 million a year ago. Revenue declined 59.33% to RM671.35 million from RM1.65 billion.

The board expects the operating environment of the group to remain tough in the coming quarter.

Ann Joo Resources Bhd's wholly-owned subsidiary Ann Joo Integrated Steel Sdn Bhd has received the green light from bondholders for early settlement of RM104.66 million of its bonds, which forms the last tranche of the RM500 million redeemable bonds issued in 2011.

The payment of the last tranche of RM104.66 million on May 27 will render the RM500 million redeemable bonds of AJIS fully redeemed.
[/size]