February, 2019


MAHB’s Q4 earnings fall on higher cost

PETALING JAYA: Malaysia Airports Holdings Bhd’s (MAHB) net profit for the fourth quarter ended Dec 31, 2018 fell 12.97% to RM28.1 million from RM32.28 million a year ago due to higher group cost.

In a filing with Bursa Malaysia, MAHB said cost rose 3.4% year-on-year due to provision of doubtful debts, higher amortisation and depreciation, utilities as well as repair and maintenance cost, which led to a 52.1% plunge in pre-tax profit to RM27.5 million from RM57.4 million a year ago.

For the Malaysian operations, pre-tax profit fell 47.5% to RM62.2 million while Turkey operations suffered a pre-tax loss of RM36.8 million. Qatar operations’ pre-tax profit jumped 134.6% to RM2.1 million.

Share of associate’s profits during the quarter was higher at RM7.3 million from RM1.7 million a year ago due to higher contribution from MFMA Development Sdn Bhd while share of joint ventures’ profits was higher by RM2.3 million due to higher contribution from Segi Astana Sdn Bhd.

Revenue for the quarter rose marginally to RM1.251 billion from RM1.246 billion a year ago driven by Malaysia and Qatar operations, whose revenues grew 3.9% and 24.1% respectively during the quarter.

MAHB declared a final dividend of 9 sen per share in respect of FY18.

However, Turkey operation recorded a 12.3% drop in revenue to RM272.3 million due to the absence of construction revenue in the quarter pursuant to the completion of boarding hall expansion of Istanbul Sabiha Gokcen International Airport.

During the quarter, airport operations grew marginally by 0.4% to RM1.17 billion while aeronautical segment rose 11.1% to RM645.3 million. Malaysia operations recorded passenger growth of 2% to 25.5 million passengers.

Non-airport operations grew 1.1% due to higher revenue from Qatar operations.

For the financial year ended Dec 31, 2018 (FY18), MAHB’s net profit more than tripled to RM727.30 million from RM239.76 million a year ago due to unrealised gain on the fair value of investment in GMR Hyderabad International Airport Limited amounting to RM258.4 million and higher revenue of RM200.4 million.

Revenue for the year rose 4.31% to RM4.85 billion from RM4.65 billion a year ago.

For FY19, the group aims to achieve earnings before interest, tax, depreciation and amortisation (ebitda) of RM2.16 billion compared with the RM2.09 billion achieved in FY18.

The FY19 ebitda target will see contributions of RM1.21 billion from Malaysia operations, EUR185.9 million (RM927.5 million) from Turkey operations and QAR24.1 million (RM26 million) from Qatar operations.

TRC Synergy’s Putrajaya PPA1M project scrapped

PETALING JAYA: TRC Synergy Bhd’s affordable civil servant housing project (PPA1M) in Precint 18, Putrajaya has been terminated by Perbadanan Putrajaya.

TRC told Bursa Malaysia that its wholly owned subsidiary TRC Land Sdn Bhd had on Feb 25 received a three-month notice of termination from Perbadanan Putrajaya dated Feb 22.

The development agreement with Perbadanan Putrajaya was terminated on the basis on national interest, in line with the government’s initiative to consolidate the development of affordable housing under the Ministry of Housing and Local Government.

“We respect Perbadanan Putrajaya’s decision and the group remains positive and open with regards to current and/or future joint development opportunities with the government agency as well as private sector to support our country’s affordable housing agenda,” said its managing director Tan Sri Sufri Hj Mohd Zin.

“Except for the costs and expenses that we had incurred for the project, which is claimable under the agreement, the decision is not expected to have material impact on the earnings, net asset and gearing of the company and the group for financial year ended December 2019,” he added.

Recall that TRC Land had in December 2015 accepted the letter of appointment from Perbadanan Putrajaya for the project comprising 500 PPA1M residential units, 316 public residential units and 20 commercial units with a gross development value of RM292.74 million.

Affin Bank posts RM503m net profit in FY2018

KUALA LUMPUR, Feb 28 — Financial group conglomerate, Affin Bank Bhd’s net profit for the financial year ended Dec 31, 2018 (FY18) rose 20.4 per cent to RM503.08 million from RM417.85 million in FY17. Revenue was 23.08 per cent higher at RM1.92…

Sunway posts higher net profit of RM658m for FY18

KUALA LUMPUR, Feb 28 — Sunway Bhd’s net profit for the financial year ended Dec 31, 2018 (FY18), increased to RM658.99 million from RM620.59 million posted in 2017. Revenue rose to RM5.41 billion against RM5.23 billion previously, contributed by…

MBSB's after tax profit for 2018 jumps by 54.01pc to RM642.4m

KUALA LUMPUR, Feb 28 — The Malaysia Building Society Berhad (MBSB) Group today announced that its profit after tax for the financial year ending December 31, 2018 had a significant jump of RM225.27 million or 54.01 per cent from the previous…

KKB bags two Sarawak water deals worth RM110m

PETALING JAYA: KKB Engineering Bhd has bagged two contracts worth a total of RM110.8 million from the Sarawak Rural Water Supply Department.

The group told Bursa Malaysia that the first contract is for the design, construction, completion, testing and commissioning of proposed package SR1 (Southern Region) for Sarawak Water Supply Grid Programme – Stressed Areas.

The contract period is 21 months commencing from March 2019 and scheduled to complete by December 2020.

Meanwhile, the other contract is for the proposed water supply from Kota Samarahan to Sebuyau, Samarahan Division, Sarawak – construction and completion of MSCL pipeline and all associated works, Sarawak for Sarawak Water Supply Grid Programme – Stressed Areas.

The contract is for a period of 12 months commencing from March 2019 and scheduled to complete by March 2020.

KKB said both contracts are expected to contribute positively towards its earnings and net assets for the duration of the contracts.

Razer to make Malaysia its fintech hub

KUALA LUMPUR: Global gaming and lifestyle brand Razer aims to make its Malaysian office a financial technology (fintech) hub due to the warm reception of its e-wallet here.

Razer CEO Tan Min-Liang said Malaysia is the first country in the world to launch e-wallet RazerPay, which has garnered 500,000 sign-ups as Malaysians are keen to understand the use of cashless payment for their purchases.

“This is a country that is hungry for technology, hungry for innovation and one that is willing to understand what is cashless economy. We are aiming to become the largest e-wallet in Malaysia,“ he said at the launch of its Malaysian headquarters at the Vertical, Bangsar South today.

Razer Malaysia is also working with convenience store 7-11, Kenny Rogers restaurants and U Mobile in pushing more rewards and incentives for people to use the e-wallet.

RazerPay users will get a RM5 coupon to use in any 7-11 stores, a RM10 coupon to be used at any Kenny Rogers restaurants nationwide, and the company will work with U Mobile in organising weekly contests to win prizes like the gaming phone, Razer Phone 2.

Besides that, Razer Malaysia will be working with the relevant authorities and stakeholders in promoting and boosting esports into the Malaysian sporting arena.

“As the Southeast Asian games have six medals ready for esports, it is time for us to nurture Malaysian players going into the international scene and bring glory back to the country for excelling in esports,“ said Tan.

Tan added that Razer Malaysia is committed to developing the next generation of talent, first by employing 280 Malaysians and then collaborating with higher learning institutes, provide training and mentorship programmes, and offer exchange programmes across regional Razer offices.

Also at the event were Finance Minister Lim Guan Eng and Youth and Sports Minister Syed Saddiq Syed Abdul Rahman.

Meanwhile, Lim said Malaysia aspires to establish a creative and knowledge cluster in order to push the country into becoming a high income nation.

“In order to do so, we must first have three Ts: Talent, Technology and Tolerance for new ideas,“ he said in his speech at the launch.

He added that Malaysia also aspires to be part of the digital economy and that companies must have a first mover advantage, to get in early, move in fast and work hard to get a piece of the emerging market.

TNB chalks up net profit of RM3.72b in FY18

KUALA LUMPUR, Feb 28 — Tenaga Nasional Bhd’s net profit for the financial year ended Dec 31, 2018 rose to RM3.72 billion from RM2.62 billion registered in 2017. Its revenue soared to RM50.39 billion from RM15.69 billion, previously, on the back…

MAHB’s profit more than double to RM727.30m on gain from Hyderabad airport

KUALA LUMPUR, Feb 28 — Malaysia Airports Holdings Bhd’s (MAHB) net profit surged 203.35 per cent to RM727.30 million in the financial year ended Dec 31, 2018 versus RM239.75 million in 2017 due to, among others, unrealised gain on the fair value…

Tabung Haji maintains Haj subsidy with successful turnaround plan

KUALA LUMPUR, Feb 28 — The successful turnaround plan to strengthen the Tabung Haji (TH) financial performance has enabled the pilgrims management fund board to maintain the subsidy for all first-time pilgrims, CEO Datuk Seri Zukri Samat said…