Friday, April 27th, 2018

 

Globetronics, KESM climb following US tech stocks’ overnight rise

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KUALA LUMPUR (April 27): Globetronics Technology Bhd and KESM Industries Bhd shares advanced today among Bursa Malaysia top gainers following US technology stocks’ overnight rise on Thursday. At 4:17pm today, Globetronics gained 30 sen to RM4.23 while KESM was up 28 sen at RM16.02. Reuters reported that US stocks advanced on Thursday with each of Wall Street’s major indexes ending the session up 1% or higher, boosted by solid earnings results and a rebound in technology stocks as US bond yields pulled back. It was reported that the tech-heavy Nasdaq snappedRead More


AirAsia records 87% load factor in Q1

PETALING JAYA: Low-cost carrier AirAsia Group Bhd recorded a load factor of 87% for the first quarter of 2018 (Q1 2018), down two percentage points (ppts) from the same period last year.

AirAsia said in a statement that it registered a 19% increase in seat capacity during the quarter under review, while total passengers carried increased by 16% year-on-year (yoy) to 10.65 million, in line with the added capacity.

In the quarter under review, the group's total fleet size grew to 123 aircraft, comprising 87 in Malaysia (AirAsia Bhd), 15 in Indonesia (PT AirAsia Indonesia Tbk) and 21 in the Philippines (Philippines AirAsia Inc).

It added that Thai AirAsia posted a load factor of 91% in Q1 2018 (up two ppts), Indonesia AirAsia 80% (down three ppts), Philippines AirAsia 87% (down five ppts) and AirAsia India 83% (down six ppts).

At 4.25pm, AirAsia's share price rose 20 sen or 5.3% to RM3.94, with some 8.06 million shares changing hands.


Air Asia records 87% load factor in Q1

PETALING JAYA: Low-cost carrier AirAsia Group Bhd recorded a load factor of 87% for the first quarter of 2018 (Q1 2018), down two percentage points (ppts) from the same period last year.

AirAsia said in a statement that it registered a 19% increase in seat capacity during the quarter under review, while total passengers carried increased by 16% year-on-year (yoy) to 10.65 million, in line with the added capacity.

In the quarter under review, the group's total fleet size grew to 123 aircraft, comprising 87 in Malaysia (AirAsia Bhd), 15 in Indonesia (PT AirAsia Indonesia Tbk) and 21 in the Philippines (Philippines AirAsia Inc).

It added that Thai AirAsia posted a load factor of 91% in Q1 2018 (up two ppts), Indonesia AirAsia 80% (down three ppts), Philippines AirAsia 87% (down five ppts) and AirAsia India 83% (down six ppts).

At 4.25pm, AirAsia's share price rose 20 sen or 5.3% to RM3.94, with some 8.06 million shares changing hands.


AirAsia records 87pc load factor in Q1

KUALA LUMPUR, April 27 — AirAsia Group Bhd recorded a load factor of 87 per cent for the first quarter ended March 31, 2018 (Q1 2018), down two percentage points from the same period last year. In a statement on its operating statistics released…


Sony profits soar nearly seven-fold to US$4.5b

TOKYO, April 27 — Sony today reported profits worth US$4.5 billion (RM17.6 billion), extending a roaring recovery supported by better sales almost across the board, including with box office blockbusters like its Jumanji reboot. The results…


Bursa stays lifted on buying in heavyweights

KUALA LUMPUR, April 27 — Bursa Malaysia remained higher at mid-afternoon, lifted by buying in heavyweight stocks led by the finance sector, dealers said. At 3.00pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 10.49 points better at 1,862.76 after…


China’s Hollywood romance sours amid trade war, debt fears Reuters / Reuters

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QINGDAO, China (April 27): When Dalian Wanda, the Chinese conglomerate, announced in 2013 that it would build an $8 billion film studio in China to lure U.S. film producers, it did so with Hollywood flash. Stars like Nicole Kidman and John Travolta were on hand as the company’s chairman, Wang Jianlin, boldly announced that the new studio in the east coast city of Qingdao would help make China a “global cultural powerhouse”. Five years later, the Oriental Movie Metropolis is set to open its doors but the mutual courtship between ChinaRead More


MISC: US$4 billion capex in next five years

KUALA LUMPUR: MISC Bhd, which will be deploying some US$4 billion (RM15.7 billion) in capital expenditure (capex) in the next five years, is looking to sustain its operating profits at current levels this year, while also looking forward to a more upbeat 2019.

“The profit performance for 2018 will come mainly from the its liquefied natural gas (LNG) division and offshore business because all our contracts are locked in,” said the group’s president and CEO Yee Yang Chien at its AGM on Friday.

For the financial year ended Dec 31, 2017, MISC saw its operating profit jump to RM2.73 billion from RM2.23 billion reported in the previous year.

MISC’s full-year net profit shrank 23.2% from RM2.58 billion to RM1.98 billion, while revenue rose 4.6% from RM9.6 billion to RM10.04 billion.

As at Dec 31, 2017, MISC’s fleet consisted of more than 120 owned and in-chartered LNG, petroleum and product vessels, 14 floating, production systems (FPS) and two LNG floating storage units. The fleet has a combined deadweight tonnage capacity of approximately 16 million tonnes.

Given the recovery in crude oil prices, Yee sees good investment opportunities in FPS and offloading and shuttle tankers segments, evidenced by more job opportunities in 2018, hence is expecting a higher number of bids.

“The value of tender is far more than in 2018. The size of tenders we are working on in the (last) three months alone is far greater than 2017. We should get to convert some of them (into contracts),” said Yee while declining to divulge the value of its tender book.

The group has earmarked about US$500 million out of the five-year capex allocation of US$4 billion for potential projects this year.

The funds will be raised by a combination equity and bank borrowings, on a 30%:70% basis.

“Our priority is to chase growth for the future. We are very focused on having a very healthy pipeline of growth performance, which we can lock-in, in 2018, that will drive our profit growth into 2019 and beyond,” Yee added.

Having won two shuttle tankers job in the North Sea, MISC sees many job opportunities in South America, which will fall under the wing of its wholly-owned subsidiary AET Inc Ltd.

On downgrades of share price by analysts, Yee noted that the difficult market conditions has affected the financial performance and stock price performance of industry players.

“We have not been spared from a difficult market, if you look at the stock price performance and the financial performance of our peers, whether in the LNG space, petroleum, heavy engineering or offshore. It has been a blood bath in terms of financial performance. If you compare ourselves again with our peers, we are a lot more resilient but we still get knocked but we are far more resilient,” he explained.

“In terms of stock price performance everyone has taken a beating, relative to our competitors and peers we again have not done too badly,” he added.

MISC Bhd, which is a 62.67% owned subsidiary of Petronas, is involved in LNG shipping , petroleum and product shipping, marine and heavy engineering and offshore businesses, among others.

Last month, MISC came under the radar of the Malaysian Anti-Corruption Commission following an RM109 million corruption allegation involving some of its officers. Investigations are ongoing.


MISC sets aside US$4 billion capex for next five years

KUALA LUMPUR: MISC Bhd, which is looking to deploy some US$4 billion (RM15.7 billion) in capital expenditure (capex) in the next five years, sees liquefied natural gas (LNG) and offshore as the key divisions to maintain its profit levels this year.

“The profit performance for 2018 will come mainly from the LNG division and offshore business because all our contracts are locked up,” said the group's president and CEO Yee Yang Chien at its AGM here today.

For the financial year ended December 31, 2017, MISC saw its operating profit jump to RM2.73 billion from RM2.23 billion reported in the previous year.

Given the recovery in crude oil prices,Yee also sees good investment opportunities in the floating, production, storage and offloading (FPSO) and shuttle tankers segments, evidenced by more job opportunities in the first quarter of 2018 as well as the whole of 2017.

MISC Bhd is involved in LNG shipping , petroleum and product shipping, marine and heavy engineering and offshore businesses, among others.

Last month, it was reported that MISC came under the radar of the Malaysian Anti-Corruption Commission (MACC) following the RM109 million corruption allegation involving some of its officers.

MISC chairman Datuk Ab Halim Mohyiddin said that the group is unable to comment on the status of the probe as investigations are still going on, but reiterated that the group has co-operated with the anti-graft body with zero tolerance against any forms of bribery and corruption.

At 3.30pm, the stock gained 11 sen or 1.6% to RM7.12 on some 959,500 shares done.


Higher oil prices could be a game changer for Asia’s trade-gap trio

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SINGAPORE/HONG KONG (April 27): Asia’s most externally vulnerable economies — India, Indonesia and the Philippines — have just taken a one-two punch. US 10-year Treasury bond yields hit 3% this week, a level long touted as one to watch for potential portfolio outflows from the region, where interest rates have barely shifted since the US Federal Reserve began slowing hiking policy rates in late 2015. An even bigger worry is that oil prices hit 3½-year highs: not only do these countries run the biggest current account deficits of Asia’s majorRead More