Monday, August 28th, 2017

 

IOI Properties’ fourth quarter net profit slips

PETALING JAYA: IOI Properties Group Bhd’s net profit for the fourth quarter ended June 30, 2017 fell 13.55% to RM336.64 million from RM389.41 million a year ago due to negative performance in property investment and leisure and hospitality segments.

In a filing with Bursa Malaysia today, the group said its property investment segment’s operating profit fell 99% to RM500,000 from RM37.6 million a year ago, due to a one-off property, plant and equipment write-off of RM43.3 million.

The leisure and hospitality segment suffered an operating loss of RM1.4 million due to lower average room rate in the competitive hotel segment as well as higher operating expenses and lower golfing activities at Palm Garden Golf Club.

Its property development segment’s operating profit however, rose 71% to RM486.4 million from RM284.9 million a year ago due to higher sales take-up rate for Trilinq project in Singapore and completion of the project during the quarter.

This was partly offset though by lower operating profit contributions from projects in the Klang Valley and Johor.

Revenue for the quarter rose 34.04% to RM1.20 billion from RM891.72 million a year ago, due to higher revenue contribution from all three segments.

For the full year ended June 30, 2017 (FY17), net profit fell 14.74% to RM920.87 million from RM1.08 billion a year ago while revenue rose 38.36% to RM4.19 billion from RM3.02 billion a year ago.

Earlier on Aug 15, 2017, the group declared an interim single tier dividend of 6 sen per ordinary share in respect of FY17, payable on Sept 8, 2017.

The group expects to perform well in FY18 based on its sizeable land bank in strategic locations both locally and overseas as well as its track record in project delivery, which places the group in a good position to adapt to market demand.

It expects demand for properties in Malaysia to remain positive with the recent rise in loan applications and approvals for property purchases while ongoing projects in Malaysia, Singapore and China will continue to contribute to the group.

The group’s share price fell 0.96% to close at RM2.06 today with a total of 2.29 million shares traded. Its market capitalisation stood at RM11.34 billion.


Inter-Pacific Asset Management fund: Making money and creating social impact

KUALA LUMPUR: Four months ago Inter-Pacific Asset Management Sdn Bhd launched Malaysia’s first Social Enterprise and Responsibility Fund, an idea which has been 10 years in the making.

The InterPac Social Enterprise and Responsibility Fund offered by Inter-Pacific Asset Management is the brainchild of its CEO Lim Tze Cheng (pix), who conceived, conceptualised, structured and finally launched the fund.

The idea came when Lim, who has always been actively involved in social and charity work, started thinking of ways to create a sustainable way to generate income to fund his social work, so that it does not depend on his income.

“I always give a portion of my salary to social work but it reached a point when I started to ask myself, if one day I lose my job or I retire and have no more income, how do I continue giving? I cannot let that (charity work) be dependent on my salary.

“Secondly, you want to give more but it is dependent on salary increment. Despite you wanting to give more, you are only able to give more based on the increment rate. In 2007 I was thinking, how do I go about this? How do I solve this issue? Then it came to my mind, why not do it differently?” he told SunBiz.

That’s when Lim came up with the idea of investing in a fund to grow his income, contribute part of the profits made to charity and social work, and reinvest the balance of the profit.

“In the long term, I’ve actually created a sustainable vehicle or charity fund. Because once it grows, it is no longer dependent on my income. I can work or don’t work, it doesn’t matter because it is an investment, it can generate its own income. The key word is sustainable,” he said.

And while a social enterprise concept such as this would have been a tough sell in a profit and returns driven industry, Lim found in Tan Sri Vincent Tan Chee Yioun, a philanthropist himself, a like-mind who was very keen on launching the fund.

Tan is the founder of Berjaya Corp Bhd, the parent company of Inter-Pacific Asset Management. Lim, who previously worked at another asset management firm, joined in December last year.

The InterPac Social Enterprise and Responsibility Fund is an open-ended fund that invests in equities listed in the local and Asean markets except for those involved in gaming, alcohol and tobacco.

The fund will disburse 20% of the gains in cash back to investors, for them to use as contributions to charities and social enterprise projects of their choice while the remaining 80% will be reinvested back into the fund.

“Currently we have raised over RM4 million. Actually our return since April is 20%,” said Lim.

He said the fund is structured in a way that allows investors to use their returns for causes that are closest to their hearts.

“Some people want to contribute to church, contribute to temple, build a school, or help an old folks’ home. Secondly, no matter where you stay, you just draw a radius of 5km, there are bound to be some old folks’ home or orphanage with very few occupants and these are the people who get zero airtime. Whether they are in need of help, nobody knows.

“But you as a person living in that area, you would know. You can take this amount and do what you wish, you might want to help them refurbish their kitchen or you may want to help them in other ways. What I’m doing is localising the impact,” he added.

Lim said response to the wholesale fund has been good and there has been feedback from retail investors asking for a similar fund for retail participants. However, Lim said it will focus on growing the current fund before embarking on a retail version.

The InterPac Social Enterprise and Responsibility Fund has the same structure as any wholesale fund, with the only difference being the concept of encouraging people to contribute to society.

The perpetual fund has no lock-in period and investors can take out their investments partially or fully at any time, with no penalties incurred.

“We want to do the right thing by investors,” said Lim.


Making money and creating social impact

KUALA LUMPUR: Four months ago Inter-Pacific Asset Management Sdn Bhd launched Malaysia’s first Social Enterprise and Responsibility Fund, an idea which has been 10 years in the making.

The InterPac Social Enterprise and Responsibility Fund offered by Inter-Pacific Asset Management is the brainchild of its CEO Lim Tze Cheng, who conceived, conceptualised, structured and finally launched the fund.

The idea came when Lim, who has always been actively involved in social and charity work, started thinking of ways to create a sustainable way to generate income to fund his social work, so that it does not depend on his income.

“I always give a portion of my salary to social work but it reached a point when I started to ask myself, if one day I lose my job or I retire and have no more income, how do I continue giving? I cannot let that (charity work) be dependent on my salary.

“Secondly, you want to give more but it is dependent on salary increment. Despite you wanting to give more, you are only able to give more based on the increment rate. In 2007 I was thinking, how do I go about this? How do I solve this issue? Then it came to my mind, why not do it differently?” he told SunBiz.

That’s when Lim came up with the idea of investing in a fund to grow his income, contribute part of the profits made to charity and social work, and reinvest the balance of the profit.

“In the long term, I’ve actually created a sustainable vehicle or charity fund. Because once it grows, it is no longer dependent on my income. I can work or don’t work, it doesn’t matter because it is an investment, it can generate its own income. The key word is sustainable,” he said.

And while a social enterprise concept such as this would have been a tough sell in a profit and returns driven industry, Lim found in Tan Sri Vincent Tan Chee Yioun, a philanthropist himself, a like-mind who was very keen on launching the fund.

Tan is the founder of Berjaya Corp Bhd, the parent company of Inter-Pacific Asset Management. Lim, who previously worked at another asset management firm, joined in December last year.

The InterPac Social Enterprise and Responsibility Fund is an open-ended fund that invests in equities listed in the local and Asean markets except for those involved in gaming, alcohol and tobacco.

The fund will disburse 20% of the gains in cash back to investors, for them to use as contributions to charities and social enterprise projects of their choice while the remaining 80% will be reinvested back into the fund.

“Currently we have raised over RM4 million. Actually our return since April is 20%,” said Lim.

He said the fund is structured in a way that allows investors to use their returns for causes that are closest to their hearts.

“Some people want to contribute to church, contribute to temple, build a school, or help an old folks’ home. Secondly, no matter where you stay, you just draw a radius of 5km, there are bound to be some old folks’ home or orphanage with very few occupants and these are the people who get zero airtime. Whether they are in need of help, nobody knows.

“But you as a person living in that area, you would know. You can take this amount and do what you wish, you might want to help them refurbish their kitchen or you may want to help them in other ways. What I’m doing is localising the impact,” he added.

Lim said response to the wholesale fund has been good and there has been feedback from retail investors asking for a similar fund for retail participants. However, Lim said it will focus on growing the current fund before embarking on a retail version.

The InterPac Social Enterprise and Responsibility Fund has the same structure as any wholesale fund, with the only difference being the concept of encouraging people to contribute to society.

The perpetual fund has no lock-in period and investors can take out their investments partially or fully at any time, with no penalties incurred.

“We want to do the right thing by investors,” said Lim.


Hibiscus Q4 earnings slump as tax quadruples

PETALING JAYA: Hibiscus Petroleum Bhd saw its net profit slump by 54.33% in the fourth quarter ended June 30, to RM8.65 million from RM18.95 million in the preceding year’s corresponding quarter, due to higher taxation.

Taxation charges incurred for the quarter under review amounted to RM19.05 million compared with RM4.29 million last year.

The higher charges were due to the impact of a reduction in the rate of supplementary charge on deferred tax liabilities relating to the fair value of identifiable assets and liabilities of the Anasuria Cluster.

The oil and gas exploration and production group’s revenue grew by 52.85% to RM74.47 million from RM48.72 million recorded in the fourth quarter ended June 30, 2016 due to the sale of larger volume of crude oil and a higher average selling price achieved per barrel of oil sold.

In a filing with Bursa Malaysia, the group’s board of directors said it expects a positive financial impact for the end of the calendar year 2017, due to improvements in facilities up time and average daily oil production, which has offset lower crude oil prices and the re-opening of two wells which were shut by the previous operator of the Anasuria cluster, and efforts to reduce operating cost.

It has also identified several projects for execution which will enhance its production volume by bringing on-stream petroleum resources that have already been discovered.

“Going forward, the group will investigate the potential of sub-surface interventions to enhance production rates, possibly commencing in the second half of the financial year ending June 30, 2018. In this regard, several opportunities have been identified and are being aggressively evaluated. This two-pronged approach is expected to keep operating expenditure per boe in check and provide an improved buffer, should oil prices deteriorate in the future,” the board added.

The group turned around for its full year earnings, where it recorded a net profit of RM106.10 million against a net loss of RM59.96 million in the previous year. This is largely attributable to the one-off charges incurred last year, for expenses stemming from the acquisition of the Anasuria Cluster.

Its revenue for the 12-month period surged by more than three-fold to RM261.27 million from RM81.69 million.

At today’s market close, Hibiscus shares fell one sen to 42.5 sen with some 7.85 million shares changing hands. Its market capitalisation stood at RM639.98 million.


Foreign funds offloaded RM382m net of shares on Bursa last week

PETALING JAYA: General foreign investor activity remained surpressed last week despite a tick-up in trade aggressiveness, according to MIDF Research.

For the week under review, foreign funds withdrew RM382.1 million net based on the transactions in the open market, excluding off market deals. This is the highest weekly attrition for the year.

“Foreign funds were selling for the past six trading days, the longest daily selling streak since December. Outfows gradually tapered during the six-day stretch as ringgit gained traction amid dollar weakness before the Jackson Hole meeting took place,” the research house said.

It noted that the weekly attrition was in conformity with those seen by Southeast Asian peers notably Thailand, Indonesia and the Philippines.

“So far, foreign investors have been selling for eight weeks this year but the longest weekly selling stretch is only three weeks in a row. Therefore, a sustained period of selling has not yet been observed,” it said.

Despite the largest weekly disposal, MIDF Research said the cumulative year-to-date net infow still stands above RM10 billion.

It noted that foreign participation rate picked up for the week, with the foreign average daily trade value (ADTV) increasing by 13% from RM611 million to almost RM700 million.

Meanwhile, the research house said retail participation took cue from the foreign side as retail ADTV increased by 5% from RM830 million to RM870 million last week, marking its fourth back-to-back week of being above RM800 million.


Foreigners offloaded RM382m of shares on Bursa

PETALING JAYA: General foreign investor activity remained surpressed last week despite a tick up in trade aggressiveness, according to MIDF Research.

For the week under review, foreign funds withdrew RM382.1 million net based on the transactions in the open market, excluding off market deals. This is the highest weekly attrition for the year.

“Foreign funds were selling for the past six trading days, the longest daily selling streak since December. Outfows gradually tapered during the six-day stretch as ringgit gained traction amid dollar weakness before the Jackson Hole meeting took place,” the research house said.

It noted that the weekly attrition was in conformity with those seen by Southeast Asian peers notably Thailand, Indonesia and the Philippines.

“So far, foreign investors have been selling for eight weeks this year but the longest weekly selling stretch is only three weeks in a row. Therefore, a sustained period of selling has not yet been observed,” it said.

Despite the largest weekly disposal, MIDF Research said the cumulative year-to-date net infow still stands above RM10 billion.

It noted that foreign participation rate picked up for the week, with the foreign average daily trade value (ADTV) increasing by 13% from RM611 million to almost RM700 million.

Meanwhile, the research house said retail participation took cue from the foreign side as retail ADTV increased by 5% from RM830 million to RM870 million last week, marking its fourth back-to-back week of being above RM800 million.


Mah Sing 2Q net profit up 2%, achieves RM819.3m property sales in 1H

KUALA LUMPUR (Aug 28): Mah Sing Group Bhd’s net profit rose 1.8% to RM90.39 million in the second quarter ended June 30, 2017 (2QFY17) from…


Pasukhas’ net profit falls 48.72% in Q2

PETALING JAYA: Pasukhas Group Bhd's net profit for the second quarter ended June 30, 2017 fell 48.72% to RM40,000 from RM78,000 a year ago due to lower gross profit derived from civil engineering and construction services.

In a filing with Bursa Malaysia today, the group said the manufacturing of LV Switchboards provided the largest contribution to its gross profit of RM532,000 while the remaining gross profit came from civil engineering and construction services, M&E engineering services and energy utilities services and power generation.

The group recorded negative cash flow from operating activities amounting to RM28.545 million and a negative net cash flow from operating activities of RM29.257 million after adjusting for interest and income tax paid.

The negative cash flow are mainly due to an increase in trade and other receivables, and decrease in amount owing to associates.

Revenue for the quarter fell 52.37% to RM7.67 million from RM16.10 million a year ago, due to a slowdown in activities on ongoing projects for local civil engineering and construction services projects.

The group said its revenue was derived solely from Malaysia.

For the six months ended June 30, 2017, net profit fell 53.62% to RM186,000 from RM401,000, while revenue fell 58.51% to RM14.23 million from RM34.29 million a year ago.

Moving forward, the group expects the energy utilities services and power generation segment to be one of the major contributors to its earnings, besides civil engineering and construction services for the rest of the year.

Despite challenges this year, it remains optimistic as it will continue leveraging on its clients base, internal strength and marketing efforts to secure new contracts from local and overseas clients.

“Furthermore, the board is confident of the future prospects of the group in anticipation of the improved economy and in line with the additional roll out of more infrastructure projects initiated by the government,” it said.

It expects the continuous growth in the construction sector and the acquisitions of Pasukan Khas Construction Sdn Bhd and I.S. Energy Sdn Bhd to contribute positively to its financial performance.

The group's share price rose 3.45% to close at 15 sen, with a total of 3.74 million shares traded, giving it a market capitalisation of RM125.79 million.


Lay Hong leaps 10 fold to RM4.42m in Q1

PETALING JAYA: Lay Hong Bhd's net profit jumped more than 10 fold to RM4.42 million for the first quarter ended June 30, 2017, against RM419,000 in the previous corresponding period, driven by higher quantity of eggs sold, higher quantity and price of processed and frozen products sold as well as higher contribution from the retail supermarket segment.

Its revenue expanded 15.2% from RM158.95 million to RM183.04 million.

The group told Bursa Malaysia that the entry of NH Foods Ltd as a substantial shareholder recently has marked a major step forward for its chicken product manufacturing business in the form of new product development and market penetration.

“The company is now reviewing its strategies and will capitalise on the strength of NH Foods to take the company to greater heights.”

Lay Hong noted that a new joint venture company under the name of NHF Manufacturing (Malaysia) Sdn Bhd has been set-up and is now actively working on its plant set-up and product development.

“As at to-date, a total of 11 products have been launched and the response has been encouraging. The company is continuously researching on viability of new products to be developed and introduced to our production line. It is expected that new products will be launched in future.”

Lay Hong revealed that a piece of industrial land in Selangor Halal Hub, Pulau Indah has been identified for the new plant and work is currently being done on the factory and machinery layout.

“This is expected to be the site for the JV with NH Foods. Works to acquire and build the said factory is progressing in a timely manner in accordance to our planned timeline.”

The stock fell half a sen to close at 98 sen, with some 654,900 shares changing hands. It has a market capitalisation of RM596.58 million.


Bursa Malaysia ends firm listless trading

KUALA LUMPUR: Bursa Malaysia ended marginally higher, in listless trading, amid the lack of market-moving news and investors' participation, a dealer said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended 0.32 of-a-point better at 1,769.49 after moving between 1,765.65 and 1,771.85 throughout the day.

The index opened 2.58 points lower at 1,766.59 from last Friday's close of 1,769.17.

Market breadth was negative with losers outweighing gainers 579 to 298, with 327 counters unchanged, 635 untraded and 62 others were suspended.

Volume fell to 1.78 billion units, worth RM1.65 billion, from 2.0 billion units, valued at RM1.94 billion, recorded yesterday.

A dealer said investor sentiment may remain subdued this holiday-shortened week ahead of the public holidays on Thursday and Friday and this coupled with the absence of clear direction from the European Central Bank and US Federal Reserve, may seem trading subdued this week.

Heavyweights, WPRTS added 14 sen to RM3.75, IHH and Maybank improved four sen each to RM5.95 and RM9.6, respectively, Genting and HLFG both gained two sen each to RM9.77 and RM16.96, respectively, while Sime reduced four sen to RM9.09.

Of actives, DataPRP added 1.5 sen to 37.5 sen, Waseong was four sen higher at RM1.03, CMMT and AsiaPac were flat at RM1.48 and 16 sen, respectively, Olympia reduced half-a-sen to 13 sen and CCK lost 4.5 sen to 99.5 sen.

The FBM Emas Index declined 9.42 points to 12,598.58, FBM Emas Shariah Index decreased 19.16 points to 12,778.35 and the FBMT 100 Index erased 3.65 points to 12,262.54.

The FBM 70 inched down 26.5 points to 15,060.13 but the FBM Ace was 57.57 points lower at 6,609.

Sector-wise, the Plantation Index fell 19.18 points to 7,841.86, Finance gained 24.83 points to 16,718.03 and the Industrial Index fell 13.77 points to 3,203.99.

Main Market volume fell to 998.34 million shares, worth RM1.49 billion, from Friday's 1.10 billion shares valued at RM1.76 billion.

Volume on the ACE Market was reduced at 559.69 million units, worth RM133.88 million, from 717.91 million units, valued at RM146.32 million, recorded previously.

Warrants increased to 212.81 million shares, worth RM27.24 million, from Friday's 180.87 million shares worth RM24.30 million.

Consumer products accounted for 54.4 million shares traded on the Main Market, industrial products (267.36 million), construction (75.18 million), trade and services (407.86 million), technology (32.02 million), infrastructure (4.13 million), SPAC (627,000), finance (50.05 million), hotels (1.29 million), properties (78.29 million), plantations (16.53 million), mining (1.28 million), REITs (9.31 million), and closed/fund (13,200). — Bernama