KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Fraser & Neave Holdings Bhd (F&N) reported a 22.4% increase in net profit for the third quarter ended June 30, 2024 (3QFY2024), attributed to the absence of one-off non-operating items that affected the previous year's results. The company's net profit rose to RM121.63 million from RM99.37 million a year ago.
Key Financial Highlights:
Net Profit:
- Increased by 22.4% to RM121.63 million in 3QFY2024, up from RM99.37 million in 3QFY2023.
- The rise in net profit was primarily due to the absence of non-operating items such as fair value loss on investment properties, impairment loss on property, plant, and equipment, and inventories written down.
Operating Profit:
- The adjusted group operating profit for 3QFY2024 was flat compared to 3QFY2023 when excluding the non-operating items.
Earnings Per Share:
- Increased to 33.2 sen from 27.10 sen.
Revenue:
- Declined by 2.08% to RM1.3 billion, down from RM1.33 billion in 3QFY2023.
- The decrease in revenue was attributed to geopolitical uncertainties affecting exports from Malaysia and unfavorable currency translation due to a weakening baht.
Cumulative Nine-Month Period (9MFY2024):
- Net profit increased by 14.63% to RM457.78 million, compared to RM399.34 million in 9MFY2023.
- Revenue rose by 6.19% to RM3.99 billion from RM3.76 billion.
Business Outlook:
- Growth Focus:F&N plans to continue driving growth across all business units, enhancing route-to-market capabilities, and optimizing operational efficiencies.
- Dairy Farm Project:The first phase of F&N's dairy farm in Gemas, Negeri Sembilan, is expected to be completed by early 2025.
- Manufacturing Plant in Cambodia:The construction of the manufacturing plant is currently in the tender phase.
Stock Performance:
- Share Price:F&N shares closed down 42 sen or 1.4% at RM30.42 on Thursday, valuing the group at RM11.16 billion.
Conclusion:
F&N's strong financial performance in the third quarter highlights its strategic focus on growth and operational efficiency. The absence of significant non-operating losses from the previous year has significantly boosted net profit, despite challenges such as geopolitical uncertainties and currency fluctuations. The company's ongoing projects, including the dairy farm and manufacturing plant, indicate its commitment to expanding its operations and market presence.
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