ALLIANZ Malaysia Bhd reported a sizeble increase in its net profit for the third quarter ended Sept 30, 2019 (3Q19), rising 43% year-on-year (YoY), boosted by stronger contribution from the life insu- rance segment.

The bank’s net profit from July to September 2019, increased to RM142.81 million from RM99.88 million a year ago.

The life insurance segment recorded a higher profit before tax (PBT) of RM110.5 million, a 53.3% jump or RM38.4 million compared to PBT in 3Q18 of RM72.1 million mainly due to higher contribution from protection business.

However, Allianz noted the general insurance segment recorded a PBT of RM65.5 million, a decrease of 15.2% or RM11.7 million compared to PBT in 3Q18 of RM77.2 million due to higher commission and higher claims.

Allianz added that the investment holding segment registered a loss before tax (LBT) of RM1 million compared to LBT in 3Q18 of RM1.6 million due to lower management expenses in the current quarter.

Revenue for the quarter rose 9% YoY to RM1.42 billion from RM1.3 billion in the same period a year ago due to higher gross earned premiums and investment income by RM103.7 million and RM13.3 million respectively.

Dutch Lady Milk Industries Bhd's net profit fell 26.33% to RM25.2 million for the third quarter ended Sept 30, 2019, from RM34.21 million last year, despite posting higher revenue.

Dutch Lady attributed the lower earnings to "category product mix changes, higher raw material prices, negative exchange rate, investment in advertising and promotional spend, sales and services tax (SST) on local and imported services".

Earnings per share, accordingly, decreased to 39.4 sen from 53.5 sen, according to a Bursa Malaysia

Panasonic Manufacturing Malaysia Bhd’s net profit fell 9.8% to RM30.79 million in its second financial quarter ended Sept 30, 2019 (2QFY20) from RM34.13 million a year ago, on lower sales in the domestic market for both home appliances and fan products.

Panasonic also attributed the lower quarterly earnings to the reduction in interest income, as well as a share of losses from the associated company of RM1.1 million versus a share of profits of RM1.3 million last year.

As a result, earnings per share fell to 51 sen for 2QFY20 compared with 56 sen for 2QFY19, a bourse filing showed today. Quarterly revenue also declined 6.6% to RM288.59 million from RM308.81 million in 2QFY19.

We reiterate our Outperform call on Magni with an unchanged SOP-based TP of RM2.91. Separately, Magni declared a higher DPS of 2.5 sen (2QFY19: 1.875 sen).

Details of the long awaited restructuring have been announced
Bank Islam will finally take over the listing status
Split of the Group, between Bank Islam and STMB
Shareholders will get the chance to own STMB directly
Maintain earnings forecast for now as some details yet to be determined
Maintain BUY with unchanged TP of RM5.05

We maintain our HOLD recommendation on Alliance Bank Malaysia (ABMB) and fair value of RM2.90/share based on a FY20 ROE of 7.7%, pegging the stock to a P/BV of 0.8x. Nevertheless, we tweak our FY21/22 earnings by -0.9%/-7.1% after our recent company visit to account for lower asset yields with the tightened underwriting of new Alliance One Account (AOA) loans.

We maintain our BUY rating on IGB REIT with an unchanged DDMderived price target of RM2.15. We like IGB REIT for its first-class assets, strong management and robust balance sheet. Moving into 2020, we expect IGB REIT to extend its uninterrupted revenue and NPI growth, supported by high occupancy, rental growth and efficient cost management

BUY with TP of RM0.43 pegged to 1.2x PBV. We like VELESTO as a proxy for the drilling rig space in Malaysia and being the largest and only listed jack-up drilling provider in the country. VELESTO’s turnaround story seems positive with clear earnings visibility for the next 1-2 years.

Future Growth Drivers. Despite the challenging outlook of the media industry, Astro continues to grow by leveraging on its customer base to build new revenue adjacencies whilst continuing on its cost optimisation efforts. To further increase its subscriber base, Astro has been expanding its vernacular content offering via strategic partnerships (newly launched iQIYI app) and investing in more local and vernacular content, which constantly garner highest viewership.

Forecast. We lower our FY19/20/21 earnings forecasts by 8.6%/8.1%/5.6% to account for higher effective tax rate and operating expenses going forward.

Maintain BUY. After our earnings adjustment, our TP falls from RM2.20 to RM2.00 based on an unchanged 23x earnings multiple of FY20 EPS of 8.8 sen. Despite the miss in earnings this time, we expect Aeon’s shopping mall refurbishments and pivot to ready-to-eat offerings (which commands higher margins) to revive their retailing division. Maintain BUY.

New contract wins. Separately, the Group also announced that it has secured multiple contracts in Brazil, Mozambique and Malaysia with a combined value of c. RM615m. The contracts comprise of i) 3 engineering and construction contracts in Brazil, Mozambique, and Malaysia and ii) 1 drilling contract in Malaysia. Contract lifespans are up to 2QFY22. Details of projects as per table 2.

The group remains committed to increase its network expansion by around 80–100 stores in FY20F in order to fully realise its FPC capabilities. We assume in our forecast the number of outlets to surpass 600 in FY20F (from 498 in 9MFY19) with revenue growing by 23%.

Suria Capital Holdings Bhd, owner of Sabah Ports Sdn Bhd, has appealed to the Sabah state government to increase cargo tariffs by 15% to 20% at its seven ports in the state.

NEGRI SEMBILAN OIL PALMS BHD - OCT PRODUCTION OF FFB 7,378 MT; CRUDE PALM OIL 417 MT; PALM KERNEL 75 MT

AMMB Holdings Bhd (AmBank) recorded a net profit of RM319.57 million for the second quarter ended Sept 30, 2019 (2Q20), from RM348.15 million recorded a year ago due to allowance impairments and other net write-offs.

The banking group registered an allowance for impairment on financial investments of RM42.99 million in the quarter compared to RM2.82 million write-back of allowance.

AmBank also recorded RM2.59 million of other net write-offs in 2Q20, against RM5.68 million of other recoveries in the same quarter last year.

Its earnings per share for the three months were lower at 10.62 sen from 11.57 sen in 2Q19.

HUP SENG INDUSTRIES BHD - YEAR AGO QTRLY REVENUE 74.6 MILLION RGT; YEAR AGO QTRLY NET PROFIT 10.3 MILLION RGT

Alliance Bank Malaysia Bhd expects its net profit to improve in the second half (H2) of its current financial year ending March 31, 2020 (FY20), compared with the first half, underpinned by reducing credit cost.

Group chief executive officer Joel Kornreich said higher credit cost dragged down the bank’s net profit during the second quarter ended Sept 30, 2019 (Q2).

Despite MKH Bhd’s strong share price rally of approximately 25% year to date, we believe it remains undervalued. Trading at 10 times financial year 2020 (FY20) price-earnings ratio and 0.5 times FY20 price-to-book ratio, MKH offers decent earnings visibility with high property unbilled sales that buck the market trend and strong recurring income from its young and mature plantation estates as well as a steady portfolio of investment properties in Kajang/Semenyih.

Fashion retailer Padini Holdings Bhd has started the new financial year on the right note as net profit for the first quarter ended Sept 30 rose by 9.15%, thanks to improved sales.

Net profit amounted to RM19.61 million or 2.98 sen per share, versus RM17.96 million or 2.73 sen per share last year, while revenue rose to RM338.04 million from RM329.79 million, according to a filing with Bursa Malaysia today.

The group has declared a dividend of 2.5 sen per share for the financial year ending June 30, 2020 (FY20), payable on Dec 31.

Taliworks Corp Bhd’s net profit more than tripled to RM72.64 million for the third quarter ended Sept 30, 2019 (3QFY19), from RM19.68 million in 3QFY18, boosted by a gain relating to the termination of an agreement by Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH).

The group’s revenue for the quarter, however, fell 5% to RM93.62 million from RM98.36 million in the previous year.

The quarter was impacted by no contribution from Terra Square, a one-off impairment loss on inventories and receivables totalling RM59.93 million, and long outstanding receivables arising from the disposal of its dyeing business in FY17.

It also saw low Encore Melaka ticket sales, while its non-operating expenses such as depreciation, amortisation and interest charges are no longer capitalised after Encore Melaka started operations.

Bumi Armada Bhd posted a net profit of RM153.37 million in the third quarter ended Sept 30, 2019 compared to a net loss of RM502.83 million a year earlier, driven mainly by its offshore marine services (OMS) segment.

In a bourse filing today, the offshore energy facilities and services provider said revenue for the quarter was lower at RM527.81 million versus RM588.05 million a year earlier.

Earnings per share was 2.61 sen compared to loss per share of 8.56 sen.

For the nine months ended Sept 30, Bumi Armada posted a net profit of RM293.79 million versus a net loss of RM1.04 billion in the year-ago period. Revenue for the period fell to RM1.56 billion from RM1.84 billion previously.

CSC Steel Holdings Bhd's net profit for the third quarter ended Sept 30, 2019 rose more than threefold to RM10.53 million from RM2.98 million a year earlier, on improved margin underpinned by an increase in domestic sales and favourable raw material cost.

In a filing today, CSC Steel said revenue for the quarter increased 5.1% to RM353.67 million versus RM336.59 million earlier.

For the nine months ended Sept 30, CSC Steel's net profit rose to RM27.74 million versus RM23.97 million previously, on flattish revenue of RM1.03 billion.

Revenue Group Bhd's net profit grew 54% in its first quarter ended Sept 30, 2019 (1QFY20) to RM2.97 million from RM1.93 million a year ago, as revenue expanded 12% to RM16.66 million from RM14.84 million.

This positive start to the group's FY20 was due to higher income from the rental of its electronic data capture or EDC terminals, higher electronic transaction processing income, and the inclusion of revenue contribution from two newly acquired subsidiaries, Anypay Sdn Bhd and Buymall Services Sdn Bhd.

APFT signs business collaboration agreement with aircraft maintenance academy

AME Elite Consortium Bhd has proposed to acquire a piece of land in Kulai, Johor, measuring approximately 6.08 hectares for RM25 million to develop units of industrial buildings with a gross development value of RM120 million.

“The development cost will be funded by stage-of-completion payments from customers, as well as internally generated funds and/or bank borrowing in which the quantum or proportion has not been determined.

“The expected commencement date of the development is by the second quarter of 2020 and slated for completion in a period of 18 months,” the company said in a filing to Bursa Malaysia.

Poh Kong Holdings Bhd posted a net profit of RM5.39 million for the third quarter ended April 30, 2019, a 25.1% increase from the RM4.31 million recorded for the same period in the previous year, attributed to overall uptrend in gold prices.

However, the group’s revenue was down 1.7% to RM236.37 million from RM240.44 million, due to the decrease in demand of gold jewellery products.

Poh Kong’s nine-month net profit increased 5.7% to RM15.3 million against RM14.48 million reported in the same period of the previous year, while revenue rose 5.1% to RM768.65 million from RM731.35 million.

The group posted a significant jump in net profit to RM4.95 million for the second financial quarter ended Jan 31, 2019, from RM218,000 a year earlier, amid higher furniture demand in the Asian markets. Its sales were also helped by the strengthening of the US dollar against the ringgit. Revenue grew 10% to RM83.13 million from RM75.74 million.

For the first two quarters of this financial year, Jaycorp’s net profit grew 87% to RM11.29 million from RM6.03 million for the previous year’s corresponding period, while cumulative revenue increased 11% to RM175.49 million from RM157.46 million.

Halex Holdings Bhd is targeting to grow its market share to 40% in the next three to four years. The company will have a market share of 28% post-acquisition of Hextar Chemicals Ltd (HCL).

Potential strong recovery for Oceancash in 2019

According to a report by The Malaysian Reserve, Axiata Group Berhad may appoint a new Group CEO if it decides not to renew the contract of Tan Sri Jamaludin Ibrahim which will end in March 2020. Based on their sources, there are three possible candidates and two of them are former CFOs at Maxis.

IHH Healthcare committed to Fortis Healthcare takeover

We came away from SCGM Bhd’s analyst briefing last Friday with a view that it is going to take another four to six months for the company to turn around as it faces various hiccups amid heightening cost pressure and its ability to reach optimal capacity utilisation levels in the near term. Share price weakness will likely persist until signs of turnaround prevail. The TP is based on 15 times financial year 2020 (FY20) earnings per share of 4.6 sen.

RHB Retail Research said Carimin Petroleum Bhd may rise higher after forming a white candle and hitting its new 52-week high.

In a trading stocks note today, the research house said this upward momentum is likely to continue given this is the second consecutive white candle.

MClean provides surface treatment, precision cleaning and packaging services, serving various industries ranging from the hard disk drive and consumer electronics to the oil and gas industries. The group operates in Malaysia, Singapore, Thailand, and China.

The company, which has been loss-making for two consecutive financial years now, incurred a net loss of RM2.8 million on RM26.91 million in revenue for the first half of the financial year ending Dec 31, 2019.

UWC Bhd’s financial year 2019 (FY19) core net profit (CNP) of RM28.5 million (+15.6% year-on-year [y-o-y]) exceeded expectation, thanks to robust sales and margin improvement. Apart from foreign exchange (forex) boost, the sturdy set of results was contributed by strong orders from semiconductor customers coupled with favourable product mix (due to a higher requirements) which led to higher gross profit margin. The UWC management is optimistic about FY20, while highlighting the seasonal softness during the year-end festive season. The escalating trade intensity may eventually benefit UWC which provides one-stop solutions as more US companies look for alternatives to avoid import tariffs.

Malaysian budget carrier AirAsia Group Bhd said on Monday it would transfer two slots on its Kuala Lumpur-Singapore route, its most profitable, to long-haul sister airline AirAsia X Bhd, which has been struggling financially.

VSTECS Bhd’s, or formerly known as ECS ICT Bhd, net profit grew 7.71% to RM8.26 million or 4.6 sen per share in the third quarter ended Sept 30, 2019 (3QFY19) from RM7.67 million or 4.3 sen per share in the same period last year, thanks to higher sales.

The company attributed higher earnings to better gross profit, lower finance income and bigger share of profit in joint venture and associate.

Its quarterly revenue was also up 5.36% at RM459.57 million from RM436.21 million due to improved market sentiment, according to a filing with Bursa Malaysia today.

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The group declared an interim dividend of 2.5 sen per share for the financial year ended Dec 31, 2019 (FY19), payable on Dec 18.

Petra Energy Bhd’s unit has bagged a hook-up, commissioning and topside major maintenance services contract from Petronas Carigali Sdn Bhd in Sabah and Sarawak.

In a bourse filing, the group announced that its wholly-owned Petra Resources Sdn Bhd had received the letter of award for the job from the exploration unit of Petroliam Nasional Bhd (Petronas) on Aug 19, and that the contract is to last 15 months from Aug 16 this year, to be completed on Nov 15, next year.

"The contract is expected to contribute positively to the earnings and net assets per share of PEB Group for the duration of the contract,” the group said, but did not disclose the value of the contract.

luang Rubber Co (Malaya) Bhd has proposed a special dividend of five sen per share for the financial year ended June 30, 2019 (FY19), on top of a first and final dividend of one sen.

The company said the dividends are subject to shareholders' approval at the forthcoming annual general meeting.

They will be payable on Jan 6, 2020, to shareholders whose names appear on the record of depositors at the close of business on Dec 12, 2019.

A source said Halim’s bid for Gamuda’s toll assets, will pave the path for the creation of a toll highway investment trust, which will eventually be listed on the local stock market.

Its chairman Tan Sri Liew Kee Sin bought the 276.99 million shares for RM129.08 million, or 46.6 sen apiece, from his son Liew Tian Xiong, who is also the company’s executive director, “for family estate planning”, filings on the same day show. Post-transaction, Kee Sin held 9.407% equity interest and was deemed interested in a 5.77% stake while Tian Xiong had 225.78 million shares or 7.67% equity interest.

VSTECS Bhd’s, or formerly known as ECS ICT Bhd, net profit grew 7.71% to RM8.26 million or 4.6 sen per share in the third quarter ended Sept 30, 2019 (3QFY19) from RM7.67 million or 4.3 sen per share in the same period last year, thanks to higher sales.

The company attributed higher earnings to better gross profit, lower finance income and bigger share of profit in joint venture and associate.

Its quarterly revenue was also up 5.36% at RM459.57 million from RM436.21 million due to improved market sentiment, according to a filing with Bursa Malaysia today.

ViTrox Corp Bhd’s nine-month financial year 2019 (9MFY19) core net profit of RM62 million (-17% year-on-year [y-o-y]) missed our and consensus estimates. The moderation was mainly due the softness in machine vision solution (MVS) product line despite the favourable foreign exchange (forex). According to SEMI, the global semiconductor equipment market is projected to drop 18% to US$52.7 billion in 2019, reflecting rising market uncertainty due in part to geopolitical tensions. We downgrade to “sell” with a lower TP of RM6.17 after cutting projections. Our TP is derived based on higher price-earnings ratio (P/E) multiple of 24 times FY20 earnings per share (EPS), in line with peers.

Maxis partners Amazon to accelerate cloud adoption for businesses

Stronger 3Q results likely to boost O&G sector

genting Malaysia Bhd's wholly-owned subsidiary Genting (USA) Ltd (GenUSA) had on Monday (Nov 4) purchased 13.2 million shares in Empire Resorts Inc from Kien Huat Realty III Ltd (KH) at US$9.74 a share under the planned Genting Malaysia-KH joint venture to privatise US-listed casino operator Empire.

Genting Malaysia Bhd's wholly-owned subsidiary Genting UK PLC has entered into an agreement to buy LeoVegas Mobile Gaming Group's subsidiary Authentic Gaming for €15 million (about RM70 million) to grow Genting's online gaming presence.

JAKS Resources may rebound higher, says RHB Retail Research

Ekovest to plow RM213.5mil into durian company PLS Plantations