share price

 
 

Asia shares extend slump as global sentiment sours

SHANGHAI, Oct 19 ― Stocks in Asia fell today as global sentiment soured on issues ranging from trade worries, Italy's 2019 budget, higher US interest rates and growth concerns in China that led to a slump in Chinese shares in the previous session….


Higher operation, maintenance costs eat into Maxis’ Q3 earnings

PETALING JAYA: Maxis Bhd’s net profit fell 9% to RM513 million in the third quarter ended Sept 30 compared with RM564 million in the same quarter last year, dragged down mainly by higher operation and maintenance costs.

Revenue declined 3% to RM2.26 billion from RM2.33 billion.

Maxis has proposed an interim dividend of 5 sen per share for the quarter under review.

The telco told Bursa Malaysia that its service revenue dipped 3% to RM2.03 billion due to the decline in prepaid, which offset the growth in postpaid and home fibre segments.

Postpaid revenue grew 2.8% to RM1.03 billion, underpinned by continued subscription growth with stable and high average revenue per user (ARPU) of RM93. However, prepaid revenue was 10.1% lower at RM851 million, reflecting intense on-going price competition in the market.

“Additionally, the prepaid segment was also impacted by SIM consolidation and migration to postpaid. Well executed marketing initiatives have helped us narrow the decline in the customer base and maintain a stable ARPU at RM42.”

The group’s earnings before interest,taxes, depreciation and amortisation (ebitda) margin on service revenue remained high at 51.7% on the back of cost optimisation initiatives.

For the quarter under review, Maxis spent RM195 million in capital expenditure (capex) for network maintenance and capacity expansion and it expects to accelerate the investment in the coming quarter.

Maxis CEO Robert Nasion said the group anticipates strong headwinds emerging with the tapering of wholesale revenue, the impact of sales and service tax, investment in new fibre offerings and continued intense price-focused competition.

The group’s nine-month net profit was down 7.6% to RM1.51 billion from RM1.64 billion, with revenue skidding 4.2% to RM6.75 billion from RM7.04 billion.

Maxis’ share price closed 1 sen or 0.2% lower at RM5.51 today on 808,100 shares traded.


Maxis Q3 profit dips 9% on higher operation, maintenance costs

PETALING JAYA: Maxis Bhd’s net profit fell 9% to RM513 million for the third quarter ended September 30, 2018 compared with RM564 million in the same quarter last year, mainly dragged by higher operation and maintenance costs.

Its revenue also declined 3% to RM2.26 billion from RM2.33 billion.

Maxis has proposed to declare an interim dividend of 5 sen per share for the quarter under review.

The telco told Bursa Malaysia that its service revenue dipped 3% to RM2.03 billion due to the decline in prepaid, which offset the growth in postpaid and home fibre segments.

Postpaid revenue grew 2.8% to RM1.03 billion, underpinned by continued subscription growth with stable and high average revenue per user (ARPU) of RM93.

However, prepaid revenue was 10.1% lower at RM851 million, reflecting intense on-going price competition in the market.

“Additionally, the prepaid segment was also impacted by SIM consolidation and migration to postpaid. Well executed marketing initiatives have helped us narrow the decline in the customer base and maintain a stable ARPU at RM42.”

The group’s earnings before interest,taxes, depreciation and amortisation (ebitda) margin on service revenue remained high at 51.7% on the back of cost optimisation initiatives.

For the quarter under review, Maxis spent RM195 million in capital expenditure (capex) for network maintenance and capacity expansion and it expects to accelerate the investment in the coming quarter.

Maxis CEO Robert Nasion said the group anticipates strong headwinds emerging with the tapering of wholesale revenue, the impact of Sales and Services Tax, investment in new fibre offerings and continued intense price-focused competition.

The group’s nine-month net profit was down 7.6% to RM1.51 billion from RM1.64 billion, with revenue skidding 4.2% to RM6.75 billion from RM7.04 billion.

At the midday break, Maxis’ share price dropped 6 sen or 1.1% to RM5.44 on 314,800 shares traded.


Press Metal buys Australian raw material supplier for RM738m

PETALING JAYA: Press Metal Aluminium Holdings Bhd’s 80%-owned subsidiary Press Metal Bintulu Sdn Bhd (PMBintulu) is acquiring a 50% stake in Japan Alumina Associates (Australia) Pty Ltd (JAA) for A$250 million (RM738.98 million).

Press Metal told Bursa Malaysia that PMBintulu had on Oct 17 entered into an asset sale agreement with ITOCHU Minerals & Energy of Australia Pty Ltd and ITOCHU Corp for the acquisition.

JAA holds 10% participation interest in the Worsley Alumina unincorporated joint venture which owns and operates the Worsley Alumina Project, one of the world’s largest and lowest cost alumina producers.

Press Metal said the acquisition will provide the group the opportunity to access 5% of the annual production of the Worsley Alumina project which amounts to 230,000 metric tonnes of alumina per annum.

“The acquisition is an effective approach towards ensuring Press Metal’s long term access to raw material and reduces its exposure and reliance on third party suppliers.”

The proposed acquisition, which will be fully funded via external bank borrowings, is expected to be completed by the first quarter of 2019.

Press Metal CEO Tan Sri Paul Koon said the acquisition forms part of the group’s strategies to strengthen the operations vertically and to partially secure long-term supply of alumina for the smelting operations with expectations of cost savings.

“We are moving in to mitigate alumina price volatilities by securing the supply of certain volume of alumina obtained through JAA, instead of third parties.”

“With this and our joint venture with Sunstone Development Co Ltd in China for the manufacturing of pre-baked carbon anodes (which is expected to be operational by year-end), Press Metal has moved to gain direct access to the most essential raw material and consumable for aluminium production, being alumina and carbon anodes.”

Press Metal’s share price gained 1% to close at RM4.83 today with 1.34 million shares done.


WCT, Aeon settle Bukit Tinggi Mall dispute out of court

PETALING JAYA: WCT Holdings Bhd and Aeon Co (M) Bhd have reached an amicable out-of-court settlement after an almost one year journey through the courts over Aeon Co’s lease of Aeon Mall Bukit Tinggi.

In a filing with Bursa Malaysia, WCT said its indirect wholly owned subsidiary Gemilang Waras Sdn Bhd and Aeon Co agreed to a supplemental lease agreement to renew the lease period for another six years from Nov 24, 2017, subject to options to renew for a further two terms, comprising six and three years respectively.

The companies agreed to withdraw their respective appeals and cross-appeals upon the execution of the supplemental lease agreement.

Gemilang Waras also agreed to not enforce the High Court Order dated April 27, 2018.

The resolution comes as both parties await the disposal of the Notice of Appeal against the High Court order by Aeon Co.

The case has gone back and forth since November last year, when Aeon Co filed a suit against Gemilang Waras to renew its lease for Aeon Mall Bukit Tinggi, to stop the latter from terminating a lease agreement dated Nov 23, 2007 and evicting the tenants from the mall.

WCT’s share price rose 3.03% or 2.5 sen to close at 85 sen today with 3.41 million shares traded while Aeon’s share price rose 1.24% or 2 sen to close at RM1.64 with 1.16 million shares traded.


OCR to raise RM8.9m via private placement

PETALING JAYA: OCR Group Bhd proposes to undertake a private placement to raise RM8.92 million to partly finance the construction works of its commercial building project in Bandar Sunway, Petaling Jaya.

The group’s estimated funding requirement for the construction works for the project is RM81.94 million.

It told Bursa Malaysia that the exercise will involve an issuance of up to 29.2 million new shares representing about 10% of its issued shares to independent third party investors.

Based on an indicative issue price of 30.5 sen per share, the proposed private placement is expected to raise gross proceeds of RM8.92 million.

Its share price closed unchanged at 32.5 sen today on volume of 694,000 shares.


World stock recovery loses steam as European auto sector takes beating

LONDON, Oct 17 — A recovery by global stocks proved short-lived as warnings over a slowing European auto sector soured an upbeat mood, while Wall Street was set for a slightly lower open after enjoying its best session in eight months the previous…


Exchange rates sour Danone’s sales, but not target

PARIS, Oct 17 — Danone said today its sales slid 4.4 per cent in the third quarter due to the plunge in the value of emerging market currencies, although the French food giant confirmed its annual target of double-digit earnings growth. The sales…


Digi.com sees higher earnings in Q3, proposes 5 sen dividend

PETALING JAYA: Digi.com Bhd reported a 2.1% rise in net profit to RM392.54 million for the third quarter ended September 30, 2018 against RM384.62 million in the previous corresponding period, underpinned by higher data consumption and lower depreciation and amortisation.

Its revenue expanded 1.9% to RM1.6 billion from RM1.57 billion.

The group has proposed to declare an interim dividend of 5 sen per share or RM389 million for the quarter under review.

Digi said in a filing with the stock exchange that its postpaid segment registered a 14.9% growth in service revenue to RM640 million with a marginal drop in average revenue per user (ARPU) to RM76 from RM77.

However, its prepaid service revenue fell 9.1% to RM835 million, leading to a slight fall in ARPU to RM31 from RM32, due to non-internet prepaid revenue continued to trace lower as a result of a combination of moderating demand for legacy voice and messaging services coupled with progressive migration of prepaid subscribers to postpaid.

During the quarter, Digi invested RM127 million in capital expenditure (capex) or 8.6% of service revenue, while delivering 4G-LTE and LTE-A network coverage expansion to 89% and 61% of population supported by 8,300km of fiber network nationwide.

Digi’s nine-month net profit increased 4.2% to RM1.16 billion from RM1.12 billion on the back of a 3.3% growth in revenue to RM4.85 billion from RM4.7 billion.

Despite market challenges ahead, the group said it will continue to aim towards improving 2018 service revenue growth, sustaining earnings before interest, taxes, depreciation and amortisation (ebitda) margin around 46%-47% and delivering efficient capex between 11% – 12% of service revenue.

At the noon break, Digi’s share price gained 6 sen or 1.4% to RM4.46 on 922,200 shares done.


Barakah Offshore shares fall after obtaining court order to stave off creditors

PETALING JAYA: Barakah Offshore Petroleum Bhd's share price fell 2 sen or 16% this morning, after it obtained orders by the High Court of Malaya restraining all proceedings and actions brought against the group and its wholly owned subsidiary PBJV Group Sdn Bhd.

At 11.17am, the second most active stock stood at 10.5 sen with 39.3 million shares changing hands. It has a market capitalisation of RM86.77 million.

The order is valid for a period of 90 days, from Oct 12, 2018 to Jan 9, 2019, it told the stock exchange yesterday.

Barakah said the order was applied for as part of the group's proactive measure to manage its debt levels. The order allows it to negotiate terms with its lenders and creditors without having the threat of any proceedings and actions.