Stocks In Focus (18-5-2018)

(May 17): Based on corporate announcements and news flow today, companies in focus on Friday (May 18) may include the following: Ahmad Zaki Resources Bhd, MRCB-Quill , Petronas Gas Bhd, Sime Darby Property Bhd, OCR Group Bhd, Shangri-La Hotels (M) Bhd, Carlsberg Brewery Bhd, Sunway Construction Group Bhd, IHH Healthcare Bhd, Cypark Resources Bhd, Tomei Consolidated Bhd and Samchem Holdings Bhd.

Ahmad Zaki Resources Bhd (AZRB) has secured a two-and-a-half year construction job via its unit Ahmad Zaki Sdn Bhd to build roads and related works worth RM197.96 million from PNB Merdeka Ventures Sdn Bhd. The contract will start on May 21.

MRCB-Quill REIT (MQREIT) saw its net property income (NPI) for the first financial quarter ended March 31, 2018 (1QFY18) fall by 7% year-on-year to RM34.5 million from RM37.1 million as property operating expenses grew some 3% to RM9.76 million from RM9.44 million.



The revenue recorded in 1QFY18 by MQREIT was also lower by 4.9% to RM44.3 million compared with RM46.6 million recorded in 1QFY17, mainly due to lower revenue generated from Platinum Sentral and Menara Shell.

Petronas Gas Bhd‘s net profit rose 4% y-o-y to RM483.22 million in the first quarter ended March 31, 2018 (1QFY18) from RM463.24 million, on higher revenue from all business segments.

Group revenue grew to RM1.35 billion from RM1.17 billion, mainly contributed by the group’s new liquefied natural gas (LNG) regasification terminal in Pengerang, Johor.

Sime Darby Property Bhd is partnering Japan’s Mitsui & Co Ltd and Mitsubishi Estate Co Ltd to jointly develop and lease built-to-suit industrial facilities with a gross development value (GDV) of RM530 million at Sime Darby Property’s Bandar Bukit Raja township in Klang, Selangor.

Under the partnership, Sime Darby Property holds a 50% stake in the company that will undertake the project, and Mitsui has the remaining 50% via its Malaysian subsidiary Mitsui M-Co.

Spanning 39 acres, the built-to-suit industrial facilities will feature warehouses and logistics facilities, offering tailored features to suit operational requirements of business tenants.

OCR Group Bhd is planning a mixed development on 47.87 acres of land in Tebrau, Johor, with an estimated gross development value of RM700 million.

Its unit Junjung Simfoni Sdn Bhd has signed a joint-venture agreement (JVA) to partner with Casa Bangsar Sdn Bhd, whose largest shareholder is the non-executive chairman of Damansara Realty Bhd, Datuk Ahmad Zahri Jamil.



It said the development will encompass two phases, to be built over the next five years. Under the JV, the profit entitlement will be shared 70% OCR, and 30% Casa Bangsar.

Shangri-La Hotels (M) Bhd‘s net profit rose 31.65% to RM25.54 million in the first quarter ended March 31, 2018 (1QFY18), from RM19.4 million a year ago, while revenue for the quarter grew 16.4% to RM151.48 million from RM130.14 million previously.

“The overall financial results for the first quarter 2018 benefited from the improved operating performances across the group’s businesses as a result of better occupancies and average room rates,” Shangri-La said.

Carlsberg Brewery Malaysia Bhd kicked off its 2018 (FY18) with a 19.9% net profit growth to RM80.82 million in its first quarter ended March 31, from RM67.39 million a year ago.

The brewer attributed the strong quarterly results to better sales during the New Year festive period, continued growth of premium brands and higher profits from its associate company Lion Brewery (Ceylon) PLC (LBCP). Quarterly revenue was up 9.1% to RM548.47 million from RM502.64 million a year ago.

Sunway Construction Group Bhd‘s (SunCon) net profit in its first quarter ended March 31, 2018 (1QFY18) grew 6% year-on-year to RM35.85 million from RM33.8 million as revenue strengthened, despite its margin being slightly affected following a profitability decline in its precast segment, which was hit by higher steel bar prices.

Revenue rose 26% y-o-y to RM529.23 million from RM419.53 million due to higher contribution from its construction segment, which mitigated the decline in its precast segment.

IHH Healthcare Bhd has extended by two weeks the validity of its enhanced revised offer to acquire a stake in India’s leading hospital chain Fortis Healthcare Ltd, despite reports that Fortis’s board had accepted the joint offer from Hero Enterprise Investment Office and Burman Family Office.



IHH said it has issued an extension letter to the board of directors of Fortis, extending the acceptance period of the enhanced revised proposal until 11.59pm on May 29. It had earlier given Fortis until May 15 to respond.

Cypark Resources Bhd has proposed to raise up to RM64.37 million via a new share placement to third party investors to meet the working capital for its engineering, procurement, construction and commissioning (EPCC) of a 30-megawatt solar photovoltaic plant at Empangan Kelinchi, Negeri Sembilan.

Cypark had on Jan 25 bagged an EPCC, and operation and maintenance contracts worth a combined RM260.51 million, for the solar plant from Cove Suria Sdn Bhd.

It said the proposed private placement involves the issuance of up to 28.74 million new shares, representing up to 10% of the issued shares of Cypark, at an issue price to be determined and announced later.

Tomei Consolidated Bhd saw a 42% year-on-year fall in net profit to RM2.5 million from RM4.32 million in its first quarter ended March 31, 2018 (1QFY18), as the jeweller was hit by lower sales in both its manufacturing and wholesales segment. Revenue fell 9% y-o-y to RM149.95 million from RM165.68 million.

An increase in foreign exchange gain and higher sales lifted Samchem Holdings Bhd‘s first quarter net profit by 61.96% to RM8.11 million from RM5.01 million a year ago. Quarterly revenue for the quarter ended March 31, 2018 climbed 20.8% y-o-y to RM262.83 million from RM217.57 million on higher sales volume.

Source: The Edge Markets







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