Friday, September 28th, 2018

 

Tesla shares plunge after US fraud suit against Musk

NEW YORK, Sept 28 — Tesla shares plunged today in the first session since US securities regulators sued chief Elon Musk for fraud, with the company shedding more than 10 per cent as US stocks retreated. About 20 minutes into trading, the Dow Jones…


‘WhatsApp rumour’ wipes 70pc off Indian firm’s stock

MUMBAI, Sept 28 — Indian e-commerce firm Infibeam Avenues lost around 70 per cent of its market value today, reportedly after investors were spooked by a WhatsApp message. The message circulating among traders raised concerns about the firm’s…


Key US inflation index slows in August

WASHINGTON, Sept 28 — A key measure of US inflation slowed in August, retreating from six-year highs recorded earlier in the summer but still hovering at the central bank’s target, the government reported today. The respite from sustained price…


Berjaya Corp posts higher profit in Q1

KUALA LUMPUR, Sept 28 — Berjaya Corporation Bhd’s (BCorp) pre-tax profit increased to RM159.32 million for the first quarter ended July 31, 2018 (Q1) from RM62.25 million reported in Q1 a year ago, due to improved operating results and gain on…


Gamuda in the red for Q4 as Splash disposal incurs RM300m losses

PETALING JAYA: Gamuda Bhd saw a net loss of RM101.08 million for the fourth quarter ended July 31, 2018 (Q418) compared with a net profit of RM102.75 million a year ago, due to one-off losses on disposal of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) (RM300 million) and impairment on investment in Gamuda Water (RM4 million).

Excluding this quarter’s one-off losses and last year’s one-off impairment loss on investment in Smart of RM98 million, Gamuda achieved a core net profit of RM203 million in Q418, an increase of 1% compared with RM201 million for the same quarter last year.

Its revenue jumped 20% to RM1.21 billion from RM1.01 billion mainly driven by higher property sales of its projects in Vietnam and Singapore as well as the work progress from its ongoing construction projects.

For the full-year period, Gamuda posted a lower net profit of RM513.88 million compared with RM602.09 million last year, while revenue soared 32% to RM4.23 billion from RM3.21 billion.

The group expects a lower profit contribution from its water concessions business next year following the disposal of its 40% stake in Splash, the concession holder of the Sungai Selangor Water Supply Scheme Phase 1 and 3.

Nevertheless, it anticipates a better overall performance next year on the back of higher property sales, driven by overseas projects especially Vietnam and the launching of new townships in Malaysia; the progress of KVMRT Line 2 continues to pick up pace; and steady earnings contribution from the expressway division.

In a separate announcement, Gamuda said it had received the letter of award dated September 27 issued by the Housing Development Board of Singapore confirming the acceptance of the tender submitted jointly by Gamuda’s wholly owned subsidiary Gamuda (Singapore) Pte Ltd with Evia Real Estate (8) Pte Ltd for the land parcel at Anchorvale Crescent at the tender price of S$318.89 million (RM963.0 million).

The tender was initially submitted jointly by Gamuda Singapore and Evia, but the land parcel under the tender will now be acquired via a joint venture (JV) company to be incorporated in due course and the equity participation in the JV consists of Gamuda Singapore (50%), Ho Lee Group Pte Ltd (30%) and Evia (20%).

The Anchorvale Crescent site in Sengkang, Singapore, is earmarked for executive condominium housing development measuring 17,137.30 sq metres.

“This development represents a lower-risk option to achieve the above strategies as there are high pent-up demand with capped construction costs. The acquisition is expected to contribute positively to the future earnings and thereby improve shareholders’ value over the medium to long-term,” Gamuda said.

Gamuda's share price gained 14 sen or 4.3% to close at RM3.36 on 7.07 million shares done.


EU slams Italy budget as stocks plunge

MILAN, Sept 28 — The European Union today issued a stern warning to Italy’s populist leaders following their defiant pledge to increase spending and run a budget deficit that risks putting Rome on a collision course with Brussels. Yesterday’s…


Berjaya Corp posts RM35.06m net profit in Q1

PETALING JAYA: Berjaya Corp Bhd (BCorp) has posted a net profit of RM35.06 million in the first quarter (Q1) ended July 31 from a net loss of RM43.4 million in the previous corresponding quarter, attributed to improved operating results and gain on subsidiary disposal amounting to RM76.6 million.

The higher operating profit for the current quarter was mainly due to increased contribution from the gaming operations segment as well as the lower pre-tax losses reported by the marketing of consumer products and services segment, it said in a statement.

The group registered lower revenue of RM2.14 billion as compared with RM2.2 billion in the previous year’s corresponding quarter, mainly due to lower contribution from the property investment and development segment.

BCorp's marketing of consumer products and services segment reported lower revenue mainly due to its retail distribution business being affected by the weak consumer sentiment, intense competition, as well as there were the absence of any major product launches during the quarter.

However, the group said this was mitigated by higher revenue from the motor distribution business driven by new vehicle sales.

The group’s restaurants and cafes segment also reported higher revenue mainly due to same-store sales growth by Berjaya Starbucks Coffee Company Sdn Bhd as well as additional Starbucks cafes operating in Malaysia in the current quarter.

The gaming operations reported higher revenue on the back of higher contribution from the Malaysian and Vietnamese operations.

On its prospects, BCorp said given the prevailing economic conditions and global financial outlook, it is of the view that the group's operating environment will be challenging going forward.


Teresa Kok to lead palm oil mission to EU, Switzerland

KUALA LUMPUR, Sept 28 — Primary Industries Minister Teresa Kok will lead a palm oil mission to the European Union (EU) and Switzerland from Sept 28 to Oct 6. In a statement today, the Primary Industries Ministry said the delegation would comprise…


Gamuda, KPS enter into agreements with Air Selangor for Splash disposal

PETALING JAYA: Gamuda Bhd and Kumpulan Perangsang Selangor Bhd (KPS) have inked share purchase agreements to divest their 40% and 30% stake in Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) to Pengurusan Air Selangor Sdn Bhd (Air Selangor).

The remaining 30% stake is held by The Sweet Water Alliance Sdn Bhd, which is controlled by businessman Tan Sri Wan Azmi Wan Hamzah.

The total purchase price of RM2.55 billion to be paid by Air Selangor for the 100% stake of Splash will be distributed via upfront sum of RM1.9 billion, followed by nine annual instalments for the remaining amount of RM650 million.

Once completed, Gamuda and KPS stand to receive total gross proceeds of RM1.02 billion and RM765 million for their shareholdings in Splash.

Gamuda said it intends to use the proceeds to pare down the interest-bearing borrowings; to fund the working capital requirements; to utilise for any other purposes as may be determined by the board from time to time within 12 months.

KPS noted that upon the completion of the disposal exercise, it is estimated to recognise about RM331.6 million in one-off loss on disposal, which is expected to have a significant impact on its net assets and earnings for the financial year ending December 31, 2018.

KPS CEO Ahmad Fariz Hassan said in deliberating the utilisation of the proceeds, the group will adopt a prudent approach on balancing current needs and future growth.

“In addition, we remain steadfast in implementing our value creation strategy in expanding our ongoing core businesses, achieving a lean balance sheet and ensuring the continued sustainability of the group's overall performance.”

Barring any unforeseen circumstances, the disposal is expected to be completed by the end of 2018 and is subjected to the fulfilment of conditions precedents taking place prior to completion.


Bursa Malaysia bucks regional trend to end lower

KUALA LUMPUR, Sept 28 — Bursa Malaysia bucked the regional trend to end the session lower, weighed down by selling in heavyweights led by Axiata, analysts said. Axiata contributed 2.766 points to the barometer index’s loss on news that it would…