batu kawan

 
 

Stocks in Focus (13-2-2018)

KUALA LUMPUR (Feb 12): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (Feb 13) may include: CSC…


KLK, Batu Kawan post lower Q1 earnings on weak CPO prices

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) and its parent company Batu Kawan Bhd reported reduced earnings for the first quarter ended Dec 31, 2017, due to lower crude palm oil (CPO) prices.

KLK’s net profit fell 11.1% to RM320.63 million for quarter under review against RM360.68 million in the previous corresponding period. Revenue was also down 5.5% from RM5.5 billion to RM5.19 billion.

The plantation firm told Bursa Malaysia that plantations profit fell 36.5% to RM266.4 million as average selling prices for CPO and palm kernel declined 5.1% and 6% to RM2,581 and RM2,488.

Besides lower CPO prices, the group’s profitability was also affected by the increase in cost of CPO production and net unrealised forex losses of RM29.7 million on loans advanced and bank borrowings to its Indonesian subsidiaries.

KLK noted that the decline in CPO prices during the period under review was due to post El-Nino fresh fruit bunches production recovery, resulting in high CPO inventories.

“Our plantations profit was correspondingly affected but this will be partly compensated by our oleochemical operations, which have benefited from higher capacities utilisation and operational efficiencies as reflected in the current quarter’s higher profit.”

It believes that the various positive steps taken by Malaysian authorities should limit any further CPO price erosion.

“Overall, the group anticipates a satisfactory result for this financial year”, KLK said.

Meanwhile, Batu Kawan’s first-quarter net profit decreased 9.9% from RM197.54 million to RM177.9 million, while revenue was down by 5.1% from RM5.63 billion to RM5.34 billion.

Average selling prices for its CPO and palm kernel contracted 5.2% and 6% to RM2,573 and RM2,475.

KLK’s share price gained 2 sen or 0.1% to close at RM25.24 today, while Batu Kawan rose 8 sen or 0.4% to RM19.48.


Malaysian stocks end higher for second day in row

KUALA LUMPUR (Feb 8): The local stock market closed higher today for a second straight session of gains, as local institutions appear to buy back…


Boston Scientific eyes higher output from Penang plant

SEBERANG PERAI, Feb 6 — Boston Scientific expects production at its Penang facility to rise by up to 10 per cent annually starting from 2019. The medical device manufacturer’s facility in Batu Kawan Industrial Park here currently at 25 per…


Only seven companies left with all-male boards — SC

KUALA LUMPUR: The Securities Commission (SC) announced that as at January 17, 2018 there are only seven companies with all-male boards out of 100 top companies, a 65 per cent improvement from 20 companies as at December 31, 2016. During the launch of the Malaysian Code on Corporate Governance (MCCG) in April last year, the […]


Seven of 100 top listed firms have all-male boards

PETALING JAYA: Only seven of the top 100 listed companies on Bursa Malaysia Bhd have all-male boards since the start of a campaign by the Securities Commission (SC) to at least have one female representative in these companies, by the end of 2018.

In a statement released today the SC said as at Jan 17, 2018 there has been a 65% improvement in the drive, from just 20 companies as at Dec 31, 2016.

The seven remaining companies are Affin Holdings Bhd, Alliance Bank Bhd, Batu Kawan Bhd, Fraser & Neave Holdings Bhd, Genting Plantations Bhd, Genting Malaysia Bhd, and UOA Development Bhd.

The SC and the 30% Club Malaysia are actively engaging these companies.

“The SC understands that some of these companies are taking steps to identify suitable candidates to secure women participation on their boards. Fraser & Neave will be nominating two women candidates to be appointed as board members in their upcoming AGM,” it said.

Moving forward, SC will review and analyse corporate governance disclosures to monitor the level of implementation of corporate governance practices including gender diversity. These observations will be published by the SC through periodic corporate governance thematic reports.

As at Dec 31, 2017, 19.2% of board seats on the top 100 listed companies on Bursa Malaysia were occupied by women; up from 16.6% as at Dec 31, 2016.


LG Electronics partners with Aspen Group to set up first academy, flagship store

GEORGE TOWN, Jan 19 — LG Electronics Inc yesterday entered into a partnership with Aspen (Group) Holdings Limited to provide technological solutions, products and services for all of the developer’s real estate developments. The signing of…


Malaysia targets 80 per cent EEV penetration by 2022

BATU KAWAN: The penetration of energy-efficient vehicles (EEVs) in the country is expected to reach 80 per cent of total industry volume (TIV) by 2022. Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan said this is in line with the National Automotive Policy (NAP) 2014 to make Malaysia a regional EEV hub […]


Malaysia targets 80% EEV penetration by 2022

BATU KAWAN: The penetration of energy-efficient vehicles (EEVs) in the country is expected to reach 80% of total industry volume (TIV) by 2022.

Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan said this is in line with the National Automotive Policy (NAP) 2014 to make Malaysia a regional EEV hub by 2022.

“The NAP has placed emphasis on green initiatives, with the ultimate objective of establishing Malaysia as a regional EEV hub.

“To date, EEV penetration in our market has been very encouraging and we have set a penetration rate of 80% in 2022,” he told reporters after attending the Boon Siew Honda Motorcycles 60th Anniversary celebration today.

He said the EEV penetration in Malaysia was expected to be ramped up to as much as 50% of TIV by end of 2017, after hitting 42.8% last year.

Ong said the EEV policy was tailored to meet future demand in vehicle technology, alongside the need to produce skilled labour, investments in technology and sustainable mobility.

He commended Boon Siew Honda for its effort in promoting the EEV initiative in Malaysia as it has benefited both consumers and the environment, and contributed to the development of EEVs in Malaysia.

“Such initiative will attract high-quality investments in domestic automotive manufacturing activities and improve the competency of our automotive industry in EEV technology,” he said.

He said Boon Siew Honda had already started the process to introduce hybrid electric vehicles in 2018 and electric vehicles in 2020 in its effort to continue producing reliable, economical and affordable motorcycles for Malaysians.

Ong said that although the local automotive business and motorcycle industry had been declining since 2014, 330,578 units of motor vehicles were sold in the January-September 2017 period compared with 397,918 units for the whole of 2016.

“We anticipate an uptrend in the automotive and motorcycles industry next year, especially in the EEV segment,” he said. – Bernama


MiE Holdings seeks listing on Main Market

PETALING JAYA: Mi Equipment Holdings Bhd (MiE Holdings) plans to list its shares on the Main Market of Bursa Malaysia Securities Bhd in 2018.

In a draft prospectus exposure with the Securities Commission, MiE Holdings said its initial public offering (IPO) will entail the issuance of 134.43 million shares, of which 25 million shares will be available for application by the Malaysian public.

MiE Holdings’ principal activity is investment holding, whilst the group is principally involved in the design, development, manufacture and sale of wafer level chip scale packaging sorting machines with inspection and testing capabilities for the semiconductor industry.

It is also involved in the provision of maintenance services and technical support for these machines, as well as the sale of related spare parts and components.

The proceeds from the IPO will be used for the construction of new factories cum offices in Batu Kawan and Bayan Lepas, Penang, as well as for research and development.

“We plan to introduce new assembly and packaging machines into our product line-up. We intend to relocate our existing operations to the Bayan Lepas factory to increase our production capacity as well as to manufacture precision fabricated parts to complement and support our existing business. We plan to set up our Batu Kawan factory to cater for future increase in our production capacity,” MiE Holdings said.

The group posted a net profit of RM16.08 million and revenue of RM57.09 million in the financial year ended Dec 31, 2016.

About 17.5 million shares will be available for application by its eligible directors, employees and business associates; while 60.45 million shares will be available by way of private placement to identified investors; and 31.48 million shares by private placement to identified bumiputra investors.

At the same time, MiE Holdings will be offering to sell 18.52 million shares by way of private placement to identified bumiputra investors.

Its principal adviser, sole underwriter and sole placement agent for the exercise is Affin Hwang Investment Bank Bhd.