Thursday, November 22nd, 2018

 

Trump on G20: ‘China wants to make a deal; if we can make a deal we will.’

PALM BEACH, Nov 22 — US President Donald Trump said today he hopes he can make a deal with China when he meets President Xi Jinping at the G20 meeting in Argentina next week. “I can say this, China wants to make a deal very badly — because of…


Amid trade tumult, Argentina wants G20 to find path forward

WASHINGTON, Nov 22 — With international tensions on trade set to come to a head at the Group of 20 summit, host Argentina is hoping to find agreement on improving global stability, even if deep disagreements remain. In an interview with AFP,…


Advancecon’s net profit for Q3 more than halves

PETALING JAYA: Advancecon Holdings Bhd’s net profit for the third quarter ended Sep 30, 2018 more than halved to RM1.53 million from the RM3.31 million recorded in the same quarter last year, on lower contribution from its construction and support services segment as well as the pre-tax loss recorded by its property investment division.

The group’s revenue rose 8% to RM65.78 million in the quarter under review from RM60.90 million due to higher progress billings from its construction and support services as compared to preceding year corresponding quarter.

Advancecon declared a first Interim single-tier dividend of one sen per ordinary share in respect of the financial year ending Dec 31, 2018

The group is optimistic to deliver a positive financial results in the current financial year due to the lack of an impact from the recent change in government which did not affect the continuity of the group’s projects, namely the West Coast Expressway and Pan Borneo Highway as well as its current outstanding order book of RM 876.3 million or 3.29 times of last year’s audited revenue which will provide earnings visibility for a minimum of 24 months.

Additionally, its board of directors noted that its ability to secure several new projects worth a total of RM91.22 million was a testament of the resilience in times of market uncertainties post the elections, to bring total projects secured thus far in the current financial year to RM461.3 million or 1.7 times of last year’s audited revenue.

The exemption of construction services shall from Sales & Services Tax and the approximately 5% reduction in diesel purchase price will result in potential savings going forward.

For the nine month period, Advancecon’s net profit fell 56.21% to RM7.73 million from RM17.66 million.

The group’s revenue for the cumulative period dipped 0.47% to RM201.27 million from RM202.23 million.


Whistleblowers making their mark on business world

PARIS, Nov 22 — UBS, Danske Bank, Cambridge Analytica and now Renault-Nissan: the probe into Carlos Ghosn demonstrates the growing power of whistleblowers as transparency requirements tighten in the corporate world. Ghosn, who is suspected of…


Amtel to sells loss making subsidiary for RM3.5m

PETALING JAYA: Amtel Holdings Bhd is disposing its entire shareholding in its loss-making wholly owned subsidiary, Mewah Amanjaya Sdn Bhd to M Galleria Storage Sdn Bhd (MGSSB) for RM3.5million.

The issued share capital of MASB which is involved in property development is RM250,000. The sale will be satisfied in cash .

MASB recorded a net loss ofRM689,000 for the first nine months of the year.

“The disposal is part of the strategy by the company to immediately unlock and realise the value of its investment in MASB as opposed to having MASB completely sell all the units developed by MASB. By realizing the investment in MASB, AHB would be able to obtain financial resources which can be channeled to other core business of AHB,” its board of directors said.

The proceeds from the disposal is expected to be utilised for the working capital of AHB Group and used within 24 months from the completion date of the disposal.

MGSSB has an issued share capital of RM2 comprising of two ordinary shares and is principally involved in operating departmental stores and supermarket.

AHB’s share price gained 0.77% to 65.5 sen with 1,500 shares done.


MBM Resources net profit jumps more than five fold

PETALING JAYA: MBM Resources Bhd’s net profit for the third quarter ended Sept 30, improved by more than five fold to RM38.10 million from RM7.33 million in the same quarter last year due to higher contributions from the auto parts manufacturing division as well as associates.

Revenue for the quarter under review increased marginally by 1.21%, to RM472.47 million from RM466.80 million.

“As anticipated in the earlier quarter, the group’s vehicle sales benefited from the GST tax-holiday period which ended on August 31, 2018. The higher demand was however, suppressed by insufficient stocks to meet market demand, as well as the reintroduction of SST in September which dampened consumers’ interest. The unexpected supply disruption further constricted the sales volume in September 2018, although the issue was promptly resolved early into the fourth quarter. With this backdrop, the group expects the operating environment for the remainder of the year to be challenging given that most of consumers’ buying interest have been fulfilled during the GST tax-holiday period,” its board of directors said.

“Likewise, for the auto parts manufacturing division, the group anticipates that the production volume will be in line with vehicle demand. At the alloy wheel plant, the management is looking at various options in order to improve the performance of the group,” it added.

For the cumulative period of nine months, the group’s net profit more than doubled to RM105.46 million from RM42.91 million.

Revenue for the three quarters grew to RM1.42 billion from RM1.28 billion.

The stock remained unchanged at RM1.87 with 62,700 shares done.


Press Metal net profit rises 5.25% in Q3

PETALING JAYA: Press Metal Aluminium Holdings Bhd saw its net profit for the third quarter ended Sept 30, 2018 rise 5.25% to RM162.49 million from RM154.38 million partly aided by proceeds from insurance settlement.

Revenue was also 12.14% higher at RM2.37 billion from RM2.11 billion due to higher metal price and the completion of the acquisition of Leader Universal Aluminium Sdn. Bhd.

Barring any unforeseen circumstances, its board of directors expects to achieve satisfactory results.

“External uncertainties remain due to the ongoing US and China trade tensions. The outlook remains challenging due to raw material supply disruptions arising from the ongoing curtailment of alumina production in Brazil. Our joint venture with Sunstone Development Co, Ltd in China for the manufacturing of prebaked carbon anodes had just been commissioned and we expect the first delivery during the first quarter of 2019,” it said.

Further, we have entered into an asset sale agreement with ITOCHU Minerals & Energy of Australia Pty Ltd (IMEA) and ITOCHU Corporation, the holding company of IMEA, for the acquisition of 50% equity interest in Japan Alumina Associates (Australia) Pty Ltd (“JAA”) to partially secure our alumina supply. JAA is one of the most competitive alumina producers in the world,” it added.

As for its smelter operations, it is close to hitting the 50% target on value-added production and will further grow to 60% by 2019. This will further enhance margin and strengthen its position directly with end users.

For the cumulative period of nine months, the group’s net profit rose to RM599.86 million from RM566.73 million.

Revenue for the first three quarters rose to RM6.93 billion from RM6.00 billion.

Press Metal declared an Interim single tier dividend of 2.0 sen per share for the financial year ending December 31, 2018.

The stock was unchanged at RM4.90 with 646,900 shares done.


Mavcom: Passenger traffic to hit 100m mark despite slower growth rate

KUALA LUMPUR, Nov 22 — Malaysia’s passenger traffic is expected to grow to between 100.3 million and 101.1 million passengers in 2018 despite an estimated growth rate of between 1.1 per cent and 2.2 per cent in 2018. The third edition…


WTO says G20 trade restrictions soar, cover US$481b of trade

GENEVA, Nov 22 — Countries belonging to the G20 group of the world’s biggest economies applied 40 new trade restrictive measures between mid-May and mid-October, covering around US$481 billion (RM2.02 trillion) of trade, the World Trade…


Allianz’s earnings jump 47.9% in Q3

PETALING JAYA: Allianz Malaysia Bhd’s net profit for the third quarter ended Sept 30 rose 47.91% to RM99.88 million from RM67.53 million a year ago, driven by the general insurance and life insurance segments.

During the quarter, the general insurance segment’s pre-tax profit rose 52.3% to RM77.2 million from RM50.7 million a year ago, contributed by higher underwriting profit from motor business.

“The better underwriting profit was due to lower claims and lower management expenses,” the group said in a filing with Bursa Malaysia.

The life insurance segment’s pre-tax profit rose 55.1% to RM72.1 million from RM46.5 million a year ago due to higher contribution from protection business.

However, the investment holding segment registered a pre-tax loss of RM1.6 million due to higher agency commission being paid from the shareholder’s fund during the quarter.

Revenue for the quarter rose 9.52% to RM1.3 billion from RM1.19 billion a year ago mainly due to higher gross earned premiums and investment income by RM90.5 million and RM22.7 million respectively.

For the nine months ended Sept 30, net profit rose 37.68% to RM276.98 million from RM201.18 million a year ago while revenue rose 8.04% to RM3.88 billion from RM3.59 billion a year ago.

As at Sept 30, the group’s total assets rose to RM17.5 billion from RM16.6 billion as at Dec 31, 2017, mainly due to increase in financial investments for the period under review while total liabilities during the same period rose to RM14.09 billion from RM13.46 billion due to increase in insurance contract liabilities from both insurance segments.

Total equity rose 8.9% to RM3.42 billion as at Sept 30 from RM3.14 billion in 2017, mainly due to net profit generated for the period.

Moving forward, the group remains confident to deliver satisfactory results for the rest of the financial year ending Dec 31.

For the general insurance segment, it expects industry growth to be subdued due to economic policies uncertainty and intensifying competition with the ongoing liberalisation of motor and fire tariffs, which is expected to put further pressure on the industry’s revenue and profits.

“However, the general insurance segment will continue to offer innovative products and services, and further expand its multi-distribution model to maintain its market leadership,” it said.

For the life insurance segment, the group will continue leveraging on the strength of its multi-distribution channels, increase productivity across distribution channels to generate growth and invest into digital initiatives to support growth and adapt in an increasingly competitive market.