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Wednesday, November 23, 2016

Companies in Focus (Nov 23)




Some of these companies are likely to be in focus on Thursday (Nov 24) trade given the recent announcement, rumours and news surrounding them.
  • Malakoff Corp Bhd seeks RM785 million against Japan's Sumitomo, Zelan in arbitration
  • RHB Bank Bhd's 3Q net profit jumped 120.4%, driven by strong growth in operating profit before allowances
  • IGB Corp Bhd's 3Q net profit increased 288% 
  • Bumi Armada Bhd's 3Q slipped into red as o&G support-services saw lower revenue

  • Malakoff Corp Bhd seeks RM785 million against Japan's Sumitomo, Zelan in arbitration
Malakoff launched arbitration proceedings against Japan's Sumitomo Corp, Zelan Holdings (M) Sdn Bhd and Sumi-Power Malaysia Sdn Bhd, seeking RM785 million for breach of contracts through its subsidiary Tanjung Bin Power Sdn Bhd (TBP), which owns the Tanjung Bin Power plant in Johor.
    In a filing with Bursa Malaysia today, Malakoff said the Sumitomo Zelan Consortium was engaged to provide TBP with engineering, design, procurement, construction, commissioning (EPCC) and related services in respect of the plant and its related facilities.
      "The arbitration is in respect of loss and damage suffered by TBP as a consequence of the respondents' and/or their agent(s)' negligence and/or breaches of duties and/or obligations under the EPCC contract. At present, the loss and damage suffered by TBP is estimated to be approximately RM785 million," it added.
        In July 2003, a consortium of Sumitomo, Zelan and Sumi-Power Malaysia had beat three other giants — Japan's Mitsubishi, German's Siemens and France's Alstom — to win a RM6 billion contract to build the 2,100-megawatt (MW) coal-fired plant to supply electricity to state utility company Tenaga Nasional Bhd.
          The Tanjung Bin power station comprises three plants of 700 MW each.
            Malakoff noted that MMC Corp Bhd, being a major shareholder of Malakoff, holds a 39.2% stake in Zelan Bhd, which is, in turn, the holding company of Zelan Holdings.
              It also pointed out that the nominee directors of MMC Corp on the board of Malakoff namely Datuk Seri Che Khalib Mohamad Noh and Datuk Ooi Teik Huat are also directors of Zelan Bhd.
              • RHB Bank Bhd's 3Q net profit jumped 120.4%, driven by strong growth in operating profit before allowances
              RHB Bank's net profit for the third quarter ended Sept 30, 2016 jumped 120.4% year-on-year to RM505.33 million, from RM229.26 million, driven mainly by strong growth in operating profit before allowances.
                Revenue for the period rose to RM2.70 billion, from RM2.66 billion a year earlier.
                  Earnings per share jumped to 12.60 sen, from 3.30 sen previously.
                    In a statement accompanying its results, RHB Bank said its efficient cost transformation programme (CTS) continued to deliver positive results.
                      It said excluding the CTS cost last year, normalised operating expenses were lower by 4.0% from a year ago.
                        RHB Bank said decline in expenses was largely attributed to headcount cost savings, partly offset by higher IT-related expenses, as the group continued to invest in technology capabilities and infrastructure.
                          It said cost to income ratio improved to 49.9% compared with 54.6% (normalised, excluding CTS expenses) in the previous year’s corresponding period.
                            For the nine months ended Sept 30, RHB Bank’s net profit increased to RM1.42 billion, from RM1.30 billion over the previous. Revenue was higher at RM8.13 billion, versus RM8.04 billion.
                              “[The] Group’s operating profit before allowances increased by 36.0% to RM2,418.8 million in the first nine months of 2016.  
                                “The strong growth was underpinned by healthy net fund-based and non-fund based income growth and effective cost management,” RHB Bank said.
                                • IGB Corp Bhd's 3Q net profit increased 288% 
                                IGB Corp's third quarter net profit increased 288% to RM148.11 million from RM45.09 million a year earlier, on higher property and hotel revenue. Net profit also rose on a gain from property, plant and equipment sale.
                                 
                                IGB Corp told Bursa Malaysia today that revenue grew to RM324.71 million in the third quarter ended September 30, 2016 (3QFY16), from RM274.49 million. 

                                "Group pre-tax profit increased by more than 100% to RM252.6 million, when compared to pretax profit of RM101.4 million achieved in the corresponding period in 2015, due to higher contributions from the property development, property investment-retail and hotel divisions.

                                "In addition, the group pre-tax profit for the current quarter had included a one-off gain of RM136.2 million from the disposal of property, plant and equipment by a subsidiary," IGB Corp said.

                                Cumulative 9MFY16 net profit was up at RM254 million against RM165.59 million in the same period last year.
                                 
                                However, revenue fell to RM867.43 million, from RM880.67 million.
                                • Bumi Armada Bhd's 3Q slipped into red as o&G support-services saw lower revenue
                                Bumi Armada reported a third quarter net loss at RM96.71 million versus a net profit of RM70 million a year earlier as the oil and gas support-services provider registered lower revenue.

                                In a statement to Bursa Malaysia today, Bumi Armada said revenue fell to RM377.51 million in the third quarter ended September 30, 2016 (3QFY16) from RM559.46 million. Revenue fell on lower income from floating gas solutions (FGS) and floating production, storage and offloading (FPSO) operations.

                                "The decline in revenue was mainly due to a 68.2% fall in FPSO and FGS revenue on the back of completion of conversion activities on the Eni 1506 and Kraken FPSO projects and reduced contributions from Armada Claire, Armada Perdana and Armada Perkasa," Bumi Armada said.

                                Bumi Armada said 9MFY16 net loss widened to RM591.61 million versus a net loss of RM149.49 million a year earlier. Revenue was lower at RM1.21 billion compared to RM1.59 billion.

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