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Bursa retreats at mid-morning

KUALA LUMPUR, Feb 27 — The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) remained in the red at mid-morning today, weighed by selected heavyweights led by Sime Darby Plantation and IHH Healthcare. At 11.05am, the benchmark index eased 7.59 points…


Property, farming drive KLK’s Q1 earnings

PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) net profit for the first quarter ended Dec 31, 2018 rose 6.61% to RM250.92 million from RM235.36 million a year ago driven by property development and investment holding segments.

In a filing with Bursa Malaysia, KLK said its property development segment achieved a much higher profit of RM11.1 million during the quarter compared with RM1.7 million a year ago supported by the increase in revenue to RM39.8 million compared with RM17.9 million a year ago.

Under the investment holding/others segment, the farming business recorded a higher profit of RM56.5 million compared with RM31.9 million a year ago due to higher crop production as a result of better yields and larger cropped area.

However, the plantation segment’s profit fell sharply by 58% to RM127.5 million from RM303.6 million a year ago despite the 7.9% improvement in fresh fruit bunches (FFB) production to 1,105,465 MT, due to the drop in crude palm oil (CPO) and palm kernel (PK) selling prices realised.

The manufacturing segment also recorded lower profit of RM98 million, reflecting a 28.8% drop from RM137.7 million a year ago while revenue fell 12.4% to RM2.20 billion from RM2.52 billion a year ago as a result of lower selling prices.

“Decline in profits from China and Europe operations had more than offset the improvement in profits from Malaysia operations,” KLK said.

The oleochemical division’s profit was lower at RM94.5 million compared with RM137.1 million a year ago but profit from the other manufacturing units had increased to RM3.5 million compared with RM641,000 a year ago.

KLK said the group’s profit had accounted for foreign currency exchange gain of RM38 million which arose from the translation of inter-company loans denominated in foreign currencies and a surplus of RM22.5 million arising from government acquisition of plantation land.

Revenue for the quarter fell 21.06% to RM4.09 billion from RM5.18 billion a year ago.

Moving forward, the group expects a reasonably satisfactory profit for the financial year ending Sept 30, 2019 (FY19).

“Prevailing CPO prices had since recovered from the low levels in the preceding quarter. Should such recovery be sustained, we are optimistic that the prospects for plantation profit for FY19 will be satisfactory,” it said.

It expects the oleochemical division to sustain its performance through increase in capacity utilisation and improvement in margins.

KLK’s share price fell 0.24% to close at RM24.74 today with 317,700 shares traded.


Bursa ends morning session mixed

KUALA LUMPUR, Dec 21 — Bursa Malaysia ended the morning session mixed as Tenaga and Kuala Lumpur Kepong helped lift the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) amid weak regional markets. At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI…


Property segment drives Tadmax to RM4.45m net profit in Q3

PETALING JAYA: Tadmax Resources Bhd reported a net profit of RM4.45 million for the third quarter ended Sept 30, 2018 compared with a net loss of RM19.82 million a year ago, driven by the property business segment.

In a filing with Bursa Malaysia, the group said its property business reported a pre-tax profit of RM8.43 million during the quarter. It was the only segment that reported a profit during the quarter.

Revenue for the quarter rose 79.20% to RM46.17 million from RM25.76 million a year ago, due mainly to contribution from the property business segment, which in turn was attributed to the higher percentage completion achieved by its Mizumi Residences project in Kepong.

For the nine-month period, the group's net profit plunged 90.34% to RM2.66 million from RM27.56 million a year ago while revenue jumped 86.36% to RM120.22 million from RM64.51 million.

Moving forward, Tadmax said the final quarter of the financial year ending Dec 31, 2018 will see contribution from the continued progress and performance of Mizumi Residences, which has already been 80% taken up.

However, the group said the energy business will not contribute to its near-term profitability as it would take about four years before commercial operation begins. Submission of the final technical and commercial proposal was made to the Energy Commission on July 31, 2018.

Recall that the company had entered into a heads of agreement on Sept 14, 2018 with Selangor government-linked Worldwide Holdings Bhd and Korea Electric Power Corp, which is expected to augur well for the group's power plant project in Pulau Indah.

As for the industrial supplies business, the group said the anticipated reduced activity in the construction market will be a challenge for the segment's revenue growth potential for the rest of 2018 and next year.


KLK shares dip as much as 20 sen after reporting lower net profit

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK), whose net profit halved in the fourth quarter ended Sept 30, 2018, saw its share price fall as much as 20 sen this morning.

The stock fell 20 sen to trade at a low of RM24.72 from its last adjusted closing price of RM24.92, making it one of the top losers in early trade. At midday, the stock was 6 sen or 0.24% lower at RM24.86 with 45,100 shares traded.

Yesterday, the plantation firm reported a 58.1% decline in net profit to RM101.5 million during the quarter from RM242.12 million a year ago, dragged by weak crude palm oil price.

Revenue was also down by 18.8% to RM4.19 billion from RM5.16 billion.


QSR teams up with KIP for drive-thru KFC outlets

KUALA LUMPUR: QSR Brands (M) Holdings Bhd, which has inked two agreements with Kepong Industrial Park (KIP) Group to develop new KFC drive-thru restaurants, plans to open a minimum of 67 new KFC outlets and another 60 Pizza Hut outlets nationwide over the next three years.

Speaking at the memorandum of understandings (MoUs) signing ceremony yesterday, QSR Brands managing director Datuk Seri Mohamed Azahari Mohamed Kamil said the group also planned to upgrade close to 20% of its stores for a fresh new look.

The group has over 810 KFC and 460 Pizza Hut outlets across Malaysia, Singapore, Cambodia and Brunei.

Moving forward, Mohamed Azahari said the group intends to continue collaborating with the renowned developer to keep the momentum of its restaurant growth across its retail centres going, adding it is now in talks with seven property developers.

Under the MoUs, the parties will jointly develop two new KFC drive-thru restaurants at KIP Group’s retail outlets, namely KIP Mall Desa Coalfields in Sungai Buloh and KIP Mart Lavendar in Senawang.

KIP Group’s CEO Valerie Ong said the partnership is expected to boost KIP Real Estate Investment Trust’s (KIP Reit) occupancy rate and footfall to 1,500 visitors per day once it opens its doors to the public in December next year.

She said with the extension of the new KFC drive-thru restaurant, the group’s KIP Mart Lavendar is expected to increase its occupancy rate by 4% to about 85%.

“The addition of KFC restaurants to the present tenant mix will increase our array of food and beverage outlets that will inevitably take both QSR Brands as well as KIP Group to the next level. We look forward to more successful collaborations in the near future,” Ong added.

To recap, QSR Brands and KIP Reit formed its first strategic collaboration last month via a tenancy agreement to establish a KFC restaurant at KIP Mart in Kota Tinggi, Johor.

KIP Reit, which has total assets under management of RM614.9 million as at Sep 30, 2018, is expected to surpass the RM1 billion mark by 2019.

KIP Reit’s portfolio consists of five KIP Marts properties located at Masai, Tampoi, Kota Tinggi, Senawang and Malacca as well as a retail mall in Bangi known as KIP Mall.

Asked to update on the group’s RM2 billion initial public offering (IPO) plans slated by this month, Mohamed Azahari said “work is in progress”.

According to a draft prospectus submitted to the Securities Commission Malaysia, QSR Brands is offering a total of 1.465 billion shares for sale in its IPO, which includes a public issue of 70 million new shares.

Proceeds from the IPO will mainly be used for the expansion of KFC and Pizza Hut businesses across the country within 12 months.


QSR inks deals with KIP for KFC drive-thru outlets

KUALA LUMPUR: QSR Brands (M) Holdings Bhd, which has inked two agreements with Kepong Industrial Park (KIP) Group to develop new KFC drive-thru restaurants, plans to open a minimum of 67 new KFC outlets and another 60 Pizza Hut outlets nationwide over the next three years.

Speaking at the memorandum of understandings (MoUs) signing ceremony yesterday, QSR Brands managing director Datuk Seri Mohamed Azahari Mohamed Kamil said the group also planned to upgrade close to 20% of its stores for a fresh new look.

The group has over 810 KFC and 460 Pizza Hut outlets across Malaysia, Singapore, Cambodia and Brunei.

Moving forward, Mohamed Azahari said the group intends to continue collaborating with the renowned developer to keep the momentum of its restaurant growth across its retail centres going, adding it is now in talks with seven property developers.

Under the MoUs, the parties will jointly develop two new KFC drive-thru restaurants at KIP Group’s retail outlets, namely KIP Mall Desa Coalfields in Sungai Buloh and KIP Mart Lavendar in Senawang.

KIP Group’s CEO Valerie Ong said the partnership is expected to boost KIP Real Estate Investment Trust’s (KIP Reit) occupancy rate and footfall to 1,500 visitors per day once it opens its doors to the public in December next year.

She said with the extension of the new KFC drive-thru restaurant, the group’s KIP Mart Lavendar is expected to increase its occupancy rate by 4% to about 85%.

“The addition of KFC restaurants to the present tenant mix will increase our array of food and beverage outlets that will inevitably take both QSR Brands as well as KIP Group to the next level. We look forward to more successful collaborations in the near future,” Ong added.

To recap, QSR Brands and KIP Reit formed its first strategic collaboration last month via a tenancy agreement to establish a KFC restaurant at KIP Mart in Kota Tinggi, Johor.

KIP Reit, which has total assets under management of RM614.9 million as at Sep 30, 2018, is expected to surpass the RM1 billion mark by 2019.

KIP Reit’s portfolio consists of five KIP Marts properties located at Masai, Tampoi, Kota Tinggi, Senawang and Malacca as well as a retail mall in Bangi known as KIP Mall.

Asked to update on the group’s RM2 billion initial public offering (IPO) plans slated by this month, Mohamed Azahari said “work is in progress”.

According to a draft prospectus submitted to the Securities Commission Malaysia, QSR Brands is offering a total of 1.465 billion shares for sale in its IPO, which includes a public issue of 70 million new shares.

Proceeds from the IPO will mainly be used for the expansion of KFC and Pizza Hut businesses across the country within 12 months.


QSR Brands to invest RM1b for new KFC, Pizza Hut outlets

KUALA LUMPUR: QSR Brands (M) Holdings Bhd, which today inked two agreements with Kepong Industrial Park (KIP) Group to establish new KFC drive-thru restaurants, plans to invest over RM1 billion within the next five years for new KFC and Pizza Hut outlets nationwide.

Speaking at the memorandum of understandings (MoUs) signing ceremony today, QSR Brands managing director Datuk Seri Mohamed Azahari Mohamed Kamil said the group is looking to open 67 new KFC outlets and another 60 Pizza Hut outlets over the next three years.

Currently, the group has over 810 KFC and 460 Pizza Hut outlets across Malaysia, Singapore, Cambodia and Brunei.

Under the MoUs, QSR Brands will develop two new KFC-drive thru restaurants at KIP Group’s retail outlets, namely KIP Mall Desa Coalfields in Sungai Buloh and KIP Mart Lavendar in Senawang.

KIP Group’s CEO Valerie Ong said the partnership is expected to boost KIP Real Estate Investment Trust’s (KIP Reit) occupancy rate and footfall to 1,500 visitors per day once it opens its doors to the public in December next year.

KIP Reit currently has total assets valued at RM614.9 million as at end September and is expected to surpass the RM1 billion mark by 2019.


Still not a good quarter for planters

KUCHING: Malaysian-based planters are likely to see continued earnings pressure in the third quarter of 2018 on weaker crude palm oil (CPO) price and production. Integrated players with oleochemical divisions will fare relatively better, said researchers with Maybank Investment Bank Bhd (Maybank IB Research), benefiting from low raw material costs. To note, Malaysia Palm Oil […]


KLCI tumbles 2.63%, falls below 1,700-level

bursa

KUALA LUMPUR (Oct 11): The FBM KLCI tumbled 2.63% in early trade this morning and slipped below the crucial 1,700-point threshold , tracking widespread losses at most regional markets. At 9.05am, the FBM KLCI lost 44.51 points to 1,690.67. The top losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd, United Plantations Bhd, Petron Malaysia Refining & Marketing Bhd, Tenaga Nasional Bhd, Hong Leong Bank Bhd, Malaysian Pacific Industries Bhd and Dutch Milk Industries Bhd. Asian share markets sank on ThursdayRead More