Wednesday, August 16th, 2017

 

Taliworks earnings fall on absence of disposal gain

PETALING JAYA: Taliworks Corp Bhd's net profit for the second quarter ended June 30, 2017 plunged to RM6 million from RM76.19 million a year ago in the absence of a RM64.526 million disposal gain.

Profit before tax was 47% lower at RM10.3 million, on provisions of RM10.9 million for payments due from Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) affected by the delay in the Selangor water restructuring exercise, higher amortisation cost of RM7.6 million and higher operating costs in both the water treatment operations.

Revenue rose 18.8% to RM91.28 million compared with RM76.83 million achieved a year ago, after the impact from the provision for discounting.

Taliworks is a pure-play infrastructure company engaged in water treatment, supply and distribution, highway and toll management, waste management and construction and engineering.

For the six months period, the group's net profit declined sixfold to RM12.68 million from RM76.96 million a year ago. Revenue rose 7% to RM162.63 million, higher than the RM152.05 million achieved in the previous corresponding period.

Taliworks executive director Datuk Ronnie Lim said the results of the second quarter of 2017 were within the management’s expectations.

“Looking ahead to the second half of the year, we are positive that we will be able to maintain our earnings momentum,” he said in a statement.

Going forward, Taliworks will continue to tender more infrastructure projects to boost the construction segment’s order book. Concurrently, it is seeking new opportunities to pursue in sectors such as power, and will continue to focus on mature operational brownfield cash-generating investments.

“We remain committed with our clear and focused business strategy to continue to provide a recurring and stable source of cash flow to enhance our company’s growth and to support our company’s dividend policy,” Lim said.

Taliworks declared a second interim single-tier dividend of 2 sen per share on 1.21 billion ordinary shares, amounting to RM24.2 million, which will be paid on Sept 22, 2017.

Taliworks closed 0.68% lower at RM1.47 yesterday with 259,800 shares traded.


Taliworks earnings fall

PETALING JAYA: Taliworks Corp Bhd’s net profit for the second quarter ended June 30, 2017 plunged to RM6 million from RM76.19 million a year ago in the absence of a RM64.526 million disposal gain.

Profit before tax was 47% lower at RM10.3 million, on provisions of RM10.9 million for payments due from Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) affected by the delay in the Selangor water restructuring exercise, higher amortisation cost of RM7.6 million and higher operating costs in both the water treatment operations.

Its revenue rose 18.8% to RM91.28 million compared with RM76.83 million achieved a year ago, after the impact from the provision for discounting.

Taliworks is a pure-play infrastructure company engaged in water treatment, supply and distribution, highway and toll management, waste management and construction and engineering.

For the six months’ period, the group’s net profit declined sixfold to RM12.68 million from RM76.96 million a year ago.

Revenue rose 7% to RM162.63 million, against RM152.05 million in the previous corresponding period.

Taliworks executive director Datuk Ronnie Lim said the Q2 results are within the management’s expectations.

The company declared a second interim single-tier dividend of 2 sen per share.


Sunway plans joint venture project with RM500m GDV

PETALING JAYA: Sunway Bhd plans to set up a joint venture with Huatland Development Sdn Bhd to acquire land in Wangsa Maju, Kuala Lumpur, for RM51.07 million to develop a mixed project comprising serviced apartments and retail units with a gross development value of RM500 million.

Sunway's wholly owned subsidiary Sunway City Sdn Bhd yesterday entered into a subscription and shareholders’ agreement with Huatland Development and Sunglobal Resources Sdn Bhd (JVCo), a wholly owned subsidiary of Sunway City, for the purpose of establishing a joint venture for the project.

The JVCo has also on even date, entered into a sale and purchase agreement with Setapak Heights Development Sdn Bhd for the acquisition of the land.

“The proposed land acquisition will add 4.34 acres of freehold land in Kuala Lumpur to Sunway’s landbank, providing further visibility to the future earnings of the group. The land is strategically located in the rapidly developing area of Wangsa Maju,” Sunway said.

It added that preliminary development approvals have been obtained for the land with a plot ratio of five. Although the JVCo may modify the product mix approved, the development on the land is expected to be launch-ready by the second half of 2018.

The ability to launch this project early would improve the internal rate of return of the proposed development.The proposed development will have products with average pricing of RM550,000.

The proposed land acquisition and joint venture will be financed with bank borrowings and/or internally generated funds.

Sunway shares closed 0.72% lower at RM4.15 with 1.1 million traded.


China’s Geely says H1 2017 profits more than doubled to US$649m

SHANGHAI, Aug 16 — China’s Geely Automobile Holdings Ltd said today that first-half profit more than doubled, as cars designed with its Swedish unit Volvo won over domestic consumers. Net profit came in at 4.34 billion yuan (RM2.7 billion),…


Eversendai ‘sell’ call maintained

PETALING JAYA: Hong Leong Investment Bank (HLIB) Research is maintaining a “sell” call with a target price of 85 sen on Eversendai Corp Bhd after the company announced a proposed private placement to raise RM75.8 million.

“We feel that investors are pricing in too much of an earnings recovery (from a loss in FY16) without taking into account the risk associated with its erratic earnings delivery,” said the research house in a note today.

Eversendai is scheduled to release its second quarter results on Aug 28.

The private placement involves the issuance of up to 77.4 million new shares, representing 10% of the share capital. Of the RM75.8 million proceeds raised, RM70 million will be used to repay short-term borrowings.

Macquarie Bank has entered into a conditional share subscription agreement with Eversendai to take up the placement shares.

HLIB Research said Eversendai’s net gearing remains high at 100% currently, largely attributed to reduction in shareholder’s equity in FY16 due to write-offs of investment in Technics and bad debts as well as core loss.

“Apart from that, borrowings were also on the rise in FY16 to help fund its two liftboats contract in which 80% of its payment will only take place upon completion.”

With the private placement, the research house expects the group’s net gearing to be reduced to 84%.


Dialog’s Q4 earnings up 32.9%

PETALING JAYA: Dialog Group Bhd's net profit soared 32.9% to RM103.55 million for the fourth quarter ended June 30, 2017 compared with RM77.93 million in the previous corresponding period, driven by higher contribution from its joint ventures.

Revenue was up by 35.1% from RM717.09 million to RM968.95 million.

Dialog has proposed to declare a final dividend of 1.45 sen per share for the quarter under review.

The group told Bursa Malaysia, with the on-going operations of Pengerang Deepwater Terminal Phase 1 and current construction of Phase 2, it is now working towards expanding Phase 1 as well as securing new potential partners for Phase 3, which will include the development of industrial land and more petroleum and petrochemical storage terminals.

“Phase 3 and future phases will be developed on about 800 acres comprising reclaimable land and the buffer zone. Further development of the Pengerang Deepwater Terminal will provide more opportunities for the group's engineering, construction, fabrication and plant maintenance services,” it noted.

In the upstream sector, Dialog is actively developing new reserves from the existing contracts as well as on the lookout for viable production assets, which may become available for possible acquisition.

Barring any unforeseen circumstances, the group is optimistic that it will continue to deliver a strong performance for the financial year ending June 30, 2018.

Dialog's full-year net profit expanded 25.7% from RM294.93 million to RM370.64 million. Revenue came in at RM3.39 billion, 33.9% higher than RM2.53 billion it made a year ago.

The counter closed unchanged at RM1.93, on some 11.89 million shares done, giving it a market capitalisation of RM10.9 billion.


Seacera unit wins RM250m PR1MA contract

PETALING JAYA: Seacera Group Bhd’s 80%-owned subsidiary has bagged a RM250 million 1Malaysia People’s Housing Scheme (PR1MA) project in Rembau, Negri Sembilan.

The group said in a filing with the stock exchange today that it had accepted a letter of intent from Wearegold Sdn Bhd for the construction and completion of 1,572 houses.

The completion period for the contract is 30 months.

Seacera expects the contract to contribute positively towards its earnings and net assets for the financial year ending Dec 31, 2018.

Seacerta shares rose two sen to close at RM1.35 today, on some 2.46 million done, giving it a market capitalisation of RM332.17 million.


Matrix Concept targets stronger FY18 performance

SEREMBAN: Negri Sembilan property developer Matrix Concepts Holdings Bhd is targeting a stronger performance in the financial year ending March 31, 2018 (FY18) on the back of resilient demand for its new launches.

The company said in a statement its launches have seen an average take-up rate of above 70%.

The total gross development value (GDV) of the group’s ongoing projects is expected to significantly exceed the RM1.9 billion reported at the end of its last financial year ended March 31, 2017 (FY17), and chart a record high in its history.

“Together with the growing scale of our property development activities, we are constantly investing in strategic properties that enhance the vibrancy of our townships, regarding it as an important factor in building lively communities,” chairman Datuk Mohamad Haslah Mohamad Amin said in a statement.

He said this is witnessed through the recent launches of Xtreme Park and d’Sora Boutique Business Hotel in late 2016 and early 2017 respectively, which is seeing increasing patronage.

It is confident of achieving RM1.4 billion of new launches in FY18. The new launches in FY18 comprise mainly residential homes in Bandar Sri Sendayan and Bandar Seri Impian.

The group recently announced the acquisition of 132 acres of land in Mukim Jimah, Port Dickson, for RM57 million, with its locality being adjacent to the group’s Bandar Sri Sendayan township. The purchase is expected to be completed in November 2017, and will increase the group’s undeveloped landbank to 1,550 acres, which is expected to last until 2027.

Shareholders approved the bonus issue of one bonus share for every four Matrix Concepts shares at its AGM today. The exercise is expected to be completed in end-2017, and will increase the group’s share capital up to a maximum of RM945.1 million comprising 819.7 million shares, from RM577.6 million comprising 574.4 million shares currently.


HSS Engineers net profit falls in Q2

PETALING JAYA: HSS Engineers Bhd's net profit dropped 9.9% to RM2.97 million for the second quarter ended June 30, 2017 versus RM3.3 million in the previous corresponding period, dragged down by higher direct cost and operating expenses.

Its revenue rose 12.7% from RM33.61 million to RM37.87 million.

HSS'unbilled order book as at June 30, 2017 amounted to RM358 million, which will be billed progressively on average over the next two to five years.

The group expects to perform satisfactorily in the financial year 2017 given the strong order book, underpinned by the positive outlook in the construction industry both locally and regionally, driven largely by government continued spending on infrastructure projects.

“Barring any unforeseen circumstances, the board of directors of the company is of the opinion that the prospects for the remaining period to the end of the financial year ending Dec 31, 2017 will remain favourable,” it noted.

For the first half of the year, HSS Engineers' net profit was up by 17.4% from RM5.22 million to RM6.13 million on the back of a 2% increase in revenue from RM65.83 million to RM67.13 million.

The stock rose four sen to close at RM1.03, with some 11.07 million shares changing hands. It has a market capitalisation of RM328.65 million.


KLCI ekes out meagre gains amidst choppy trade

KUALA LUMPUR (Aug 16): The FBM KLCI eked out meagre gains in somewhat choppy trades during the morning session today, in line with the advance…