Friday, August 26, 2016

Stronger beverage exports drive Oldtown’s 1Q profit up 46%

Stronger beverage exports drive Oldtown’s 1Q profit up 46%
By Gho Chee Yuan / theedgemarkets.com | August 25, 2016 : 11:32 PM MYT

KUALA LUMPUR (Aug 25): Oldtown Bhd posted a 46.3% jump in net profit for its first quarter ended June 30, 2016 (1QFY17) to RM13.88 million, from RM9.49 million a year ago, driven by a stronger beverage manufacturing segment.

According to its unaudited financial statement on Bursa Malaysia, the coffee chain operator's beverage manufacturing segment’s pretax profit gained 69% to RM15.52 million, from RM9.21 million a year earlier; while revenue gained 20.6%, on higher export sales achieved.

Quarterly revenue gained 9.4% to RM102.89 million, from RM94.06 million.

There was no dividend proposed in the current quarter.

As at June 30, 2016, Oldtown has 240 café outlets — 206 in Malaysia, 10 in Singapore, 23 in Indonesia and one in Australia.

In contrast with its stronger beverage manufacturing segment, revenue from its café chain operation slipped 1.5% to RM45.54 million, which caused profit before tax to edge 3% lower to RM4.33 million.

Meanwhile, OldTown highlighted that both its café chain segment and manufacturing of beverages segment operate under an integrated business model, which enables the group to mitigate price fluctuations in raw materials, while preserving margins.

"It also allows for further market share growth, without additional investment in sales, marketing and logistics," it added.

Oldtown said it would continue to invest in advertising, promotional and marketing activities to promote and strengthen its brand name.

Having said that, it added that outlook for both its café chain operation, and manufacturing of beverages segments, remains competitive and challenging.

Shares in Oldtown fell four sen or 2.2% to settle at RM1.78 today, for a market value of RM803.62 million.

Maybank's 2Q net profit down 26.8% on higher impairment losses, declares 20 sen dividend

Maybank's 2Q net profit down 26.8% on higher impairment losses, declares 20 sen dividend
By Supriya Surendran / theedgemarkets.com | August 25, 2016 : 2:24 PM MYT

KUALA LUMPUR (Aug 25): Malayan Banking Bhd (Maybank)'s net profit for the second quarter ended June 30, 2016 (2QFY16) decreased by 26.8% to RM1.16 billion or 11.79 sen per share from RM1.58 billion or 16.76 sen per share a year ago as a result of higher impairment losses.

In its filing to the exchange this afternoon, Maybank said its allowances for impairment losses on loans, advances, financing and other debts increased by RM680.7 million to RM981.7 million in 2QFY16, marking a more than three-fold increase compared to 2QFY15.

"The increase was mainly due to higher net individual allowance made of RM268.4 million and collective allowance made of RM387.2 million," said Maybank.

The Group's net interest income and Islamic Banking income for 2QFY16 climbed 7.4% to RM3.91 billion compared to RM3.65 billion in 2QFY15. This was largely due to the growth in Maybank's gross loans, advances and financing.

Maybank's other operating income rose 20.6% to RM1.44 billion in 2QFY16 from RM1.19 billion in 2QFY15, mainly contributed by unrealised mark-to-market gain on revaluation of financial assets of RM403.7 million.

The group declared a single-tier interim dividend in of 20 sen per share, to be paid no later than three months from date of declaration.

The board of directors have also determined that the Dividend Reinvestment Plan will apply to the single-tier interim dividend with electable portion of 16 sen per share to be reinvested in new shares while the remaining 4 sen will be paid in cash.

For the first half of its financial year ended Dec 31, 2016 (1HFY16), Maybank recorded a 21.3% drop in net profit to RM2.59 billion or 26.41 sen per share compared to RM3.28 billion or 35.02 sen per share a year ago due to higher impairment losses on loans, advances, financing and other debts, which increased by more than three-fold to RM1.85 billion in 1HFY16.

The group's net interest income and Islamic Banking income for 1HFY16 climbed 8.5% to RM7.8 billion compared to RM7.2 billion in 1HFY15. This was largely due to the year-on-year growth in the group's gross loans, advances and financing.

Other operating income for 1HFY16 amounted to RM3.1 billion, a 12.8% increase from RM2.76 billion in 1HFY15.

Maybank shares were up 1 sen (0.13%) at 2.08pm to RM8 for a market capitalisation of RM79.87 billion.

Axiata revises up 2016 capex

Thursday, 25 August 2016 | MYT 2:40 PM
Axiata revises up 2016 capex
BY P. ARUNA

KUALA LUMPUR: Axiata Group Bhd is revising its capital expenditure for the year upwards to about RM6bil, with the bulk of it to be put towards improving its network quality in Malaysia, Indonesia and Bangladesh.

The group expects to spend about RM1.5bil to improve the quality of its network in Malaysia this year, compared to about RM850mil spent in the previous year.

President and group CEO of Axiata Tan Sri Jamaludin Ibrahim told a media briefing that the group was aggressively ramping up its network quality in the three countries.

The group's revenue for the first half ended June 30, 2016 grew 9.1% to RM10.3bil year on year, due to the earlier than expected consolidation of its new acquisition, Ncell in April.

Profit after tax, however, fell 45.7% to RM633mil mainly due to the performance of some of its operating companies, depreciation and amortisation, finance costs and forex losses.

Matrix Concepts’ 2Q net profit jumps 73.9%

Thursday, 25 August 2016 | MYT 2:44 PM
Matrix Concepts’ 2Q net profit jumps 73.9%

PETALING JAYA: Property developer Matrix Concepts Holdings Bhd’s net profit jumped 73.9% to RM51.9mil for the three months ended June 30, 2016, from RM29.9mil in the corresponding period last year.

The group attributed its strong performance to higher revenue recognition from the sales of residential and commercial properties.

During the quarter in review, Matrix Concepts saw its revenue increase 62.9%to RM196.2mil from RM120.4mil previously. The group’s net earnings per share rose to 9.2 sen from 6.5 sen previously.

The group declared a first interim single-tier dividend of 3.25 sen.

In the first quarter (1Q) for its financial year (FY) ending March 31, 2016, the Group’s new property sales stood at RM256mil, which was substantially higher than RM210.5mil recorded in the corresponding period in the preceding year, as it benefitted from the resilient demand across its townships of Bandar Sri Sendayan in Seremban and Bandar Seri Impian in Kluang, Johor.

Of total 1Q17 revenue, sales of residential properties contributed RM152.3mil, while sales of commercial properties and land contributed RM25.8mil and RM11.7mil, respectively.

The group’s investment properties comprising Matrix Global Schools and d’Tempat Country Club made up the remaining RM6.4mil.

“With the sanguine outlook on student enrolments, we are targeting for Matrix Global Schools to achieve operational breakeven in FY2017. This would bring the group a step closer towards reaching an inflection point in profit contribution from our investment properties,” Matrix Concepts chairman Mohamad Haslah Mohamad Amin said in a statement.

As at June 30, 2016, the group’s unbilled sales stood at RM690.6mil, compared with RM621.4mil as at March 31, 2016.

For the rest of FY2017, Matrix Concepts is set to launch new projects worth RM700mil in gross development value (GDV), comprising mainly affordably-priced homes. The group had launched more than RM400mil in GDV in 1Q17.

Aemulus signs MoU with Peregrine Semiconductor

Thursday, 25 August 2016 | MYT 3:09 PM
Aemulus signs MoU with Peregrine Semiconductor

The Penang-based test equipment manufacturer announced today that the MoU signed between its wholly owned subsidiary Aemulus Corp Sdn Bhd and PSC on Aug 22 did not have a contract value.

“There is no contract value stated as this MoU serves as an intention of the parties to collaborate to develop a Microwave Test Subsystem. Unless otherwise mutually agreed in writing, this MoU shall be terminated on the second anniversary of the effective date,” Aemulus said.

“This MoU shall have no material effect on the net assets and gearing of the company for the financial year ending Sept 30, 2016, but is anticipated to contribute positively to the earnings of the company should there be any successfully development of Microwave Test Subsystem from the collaborative effort,” it added.

PSC is the founder of radio-frequency (RF) silicon on insulator. It is a leading fabless provider of high-performance, integrated RF solutions.

Batu Kawan in 2016 Forbes Asia’s fabulous 50 list

Thursday, 25 August 2016 | MYT 4:03 PM
Batu Kawan in 2016 Forbes Asia’s fabulous 50 list

SINGAPORE: Batu Kawan Bhd is the only Malaysian company to make this year’s Forbes Asia’s Fabulous 50 List (Fab 50).

Batu Kawan is an investment holding company with subsidiaries and associates involved in chemical manufacturing, transportation, property investment, investment holding and plantations.

In a statement today, Forbes Media said the Fab 50 were selected from a pool of 1,524 public companies in the region, with at least US$1.7bil (US$1=RM4.03) in annual revenue.

For the first nine months ended June 30, 2016, Batu Kawan had already registered revenue of about US$3.05bil.

Forbes Media said companies are analysed using a battery of more than a dozen financial measures and the list excludes those that have a debt ratio of more than 50 per cent or where the government owns at least half the shares.





The result is the region’s best of the best, it added.

Forbes Media also said the list is an annual honour roll highlighting some of the brightest stars in the Asia Pacific region.

This year marks the 12th edition of the Fab 50 list and the 272 companies that have appeared on it at least once, reflects the changing nature of business in the Asia Pacific region.

Forbes Media said Alibaba Group not only makes its debut this year among the region’s best publicly traded big companies, it also boasts the highest market value of all and outperforms on a range of other metrics.

There are 21 new entrants to this year’s list, it said.

For six years in a row, companies from China dominate the Fab 50 list, with 22.

India claims the second highest number at eight, down from 10 last year and South Korea has the third highest at five, one more than last year.

Hong Kong also make a comeback with three newcomers, said Forbes Media.

Vietnam’s first entrant to the Fab 50 list is Vietnam Dairy Products, while the Philippines has three companies, up from two previously.

Taiwan and Japan have each two this year, with Thailand and Malaysia, one.

Australia returns to the list with biotech pharmaceutical company CSL, after no representation last year.

Sumber Alfaria Trijaya, operator of the Alfamart chain, remains the sole company from Indonesia this year ,while Singapore has no representation.

The full list can be found at www.forbes.com/fab50 and in the latest issue of Forbes Asia, available on newsstands now. - Bernama

Mah Sing posts RM88.8mil Q2 net profit

Friday, 26 August 2016
Mah Sing posts RM88.8mil Q2 net profit

PETALING JAYA: Amidst a soft property market, Mah Sing Group Bhd saw net profit fall marginally to RM88.8mil in the second quarter ended June 30, 2016 compared with the same quarter a year ago on lower revenue and higher income tax expenses.

The developer’s revenue was almost unchanged at 0.84% to RM773.9mil during the period in review. The company’s earnings per share (EPS) was down to 3.69 sen from 3.77 sen previously.

For the cumulative six months, Mah Sing’s net profit of RM183.85mil was 2.9% lower than the RM189.38mil registered in the first half of 2015. Consequently, its EPS fell to 6.87 sen from 8.34 sen.

The group’s revenue fell 5.2% to RM1.48bil in the first half of 2016 from RM1.56bil in the previous corresponding period.

In a statement, Mah Sing pointed out that its revenue from property development stood at about RM1.3bil and operating profit at RM252.3mil for the six months ended June 30, 2016.

It said the operating profit was higher mainly due to lower selling, marketing and administrative expenses during the current financial period.

The decrease in revenue, on the other hand, was due to M City in Jalan Ampang and Icon City in Petaling Jaya in active construction stage last year, and approaching completion in current period.

Going forward, the company expects revenue and profit contribution from Southville City @ KL South, Lakeville Residence in Taman Wahyu, and D’sara Sentral in Sungai Buloh to pick up momentum as construction work progresses.

“As planned, we have intensified launches in the second half of 2016. The timing is right as sentiments have improved.

“Our focus has been built around ‘Luxury you can afford’ and we have had very positive results,” Mah Sing group managing director Tan Sri Leong Hoy Kum said, pointing to a slew of launches with the company’s biggest township of Meridin East in Johor and the resort project of Ferringhi Residence 2 in August.

According to Leong, both projects had seen encouraging take-up rates, with the Greenway link homes in Meridin East Johor registering an 85% take up from the 492 units launched, while Ferringhi Residence 2 saw an 84% take-up from the 120 units launched.

Mah Sing said the company achieved cumulative property sales of approximately RM1.03bil for the seven-months ended July 31, 2016 due to products that were in line with the current market demand.

Leong said the overall buyers sentiment had lifted due to the interest rate cut from 3.25% to 3% by Bank Negara and demand was still strong for mass market range of properties in well-connected areas.

“We have the right product mix that is catered to the current market’s needs, hence we believe that we will continue to do well.

“Currently, obtaining mortgage financing remains the biggest hurdle for many buyers,” Leong noted.

“Property has proven to be the best hedge against inflation and we hope the banking fraternity will continue to support asset accretion by Malaysians,” he added.

At present, Mah Sing has remaining landbank of 2,492 acres with gross development value (GDV) worth approximately RM27.5bil. Including the unbilled sales of approximately RM4.2bil, the total RM31.7bil can support eight to nine years of revenue growth.

To encourage ownerships of affordable homes, Mah Sing has teamed up with Bank Simpanan Nasional (BSN) under the Youth Housing Scheme for Cerrado Residential Suites and Greenway@Meridin East.

Supporting the market’s need, the company will continue to focus within the Klang Valley, as 89% of Mah Sing’s planned residential launches priced below RM1mil, 68% priced below RM700,000 and 50% priced below RM500,000.