Corporate results: Sunway, KKB Engineering, Suria Capital, Mudajaya, WCT, Boustead, PPB, Affin Bank, Brahim’s
Sunway 4Q profit up on lower income tax expense
Sunway Bhd net profit for its fourth quarter ended Dec 31, 2018 (4Q18) rose 11.4 % year-on-year (YoY) to RM192.3 million or 3.9 sen earning per share (EPS) compared to net profit of RM172.6 million or 3.5 sen EPS in 4Q17, due to lower income tax expense. In a filling with Bursa Malaysia yesterday, the property and service provider’s revenue for the quarter decreased 15.4% YoY to RM1.37 billion as a result of lower contributions from property development, property investment and construction segments. On a full-year basis, Sunway net profit rose 6.1% YoY to RM658.9 million or 13.5 sen EPS attributed to lower income tax expense. Revenue for the year rose 3.4% YoY to RM5.41 billion. Moving forward, Sunway said it expects to continue to perform satisfactorily this year. The company declared a 3 sen dividend in 4Q18, bringing total dividends for FY18 to 7 sen.
 
KKB Engineering secures contracts worth RM111m
KKB Engineering Bhd has secured two contracts worth RM110.8 million from the Rural Water Supply Department of Sarawak or Jabatan Bekalan Air Luar Bandar Sarawak. The first contract is for the construction and commissioning of the Proposed Package SR1 (Southern Region) for Sarawak Water Supply Grid Programme – Stressed Areas, commencing this month and scheduled to complete by December 2020. The second contract is for the proposed water supply from Kota Samarahan to Sebuyau in Samarahan and involves the construction and completion of MSCL pipeline and all associated works. This contract is part of the Sarawak Water Supply Grid Programme – Stressed Areas, commencing from March 2019 and scheduled to complete by March 2020, the company noted in its exchange filing yesterday. 
 
Suria Capital’s net profit halves in 4Q18
Suria Capital Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (4Q18) more than halved to RM7.97 million from RM17.67 million a year ago, on lower revenue. Revenue for the three months fell 25.43% year-on-year (YoY) to RM85.54 million mainly due to lower construction services revenue from port operations segment. For the full financial year ended Dec 31, the port operator’s net profit increased 8.26% YoY to RM52.96 million on lower other expenses related to impairment and write-off of assets in the year. Revenue rose 20.41% YoY to RM400.54 million, mainly attributable to its port operations and contract and engineering business segments. In its exchange filing yesterday, Suria Capital noted the port operations will continue to be the core business of the group as it will remain resilient and continue to contribute positive results.
 
Mudajaya loss widens on impairments made in 4Q
Mudajaya Group Bhd’s net loss for the fourth quarter ended Dec 31, 2018 (4Q18) widened to RM235.25 million as against a RM13.82 million net loss in 4Q17, due to impairment on investment in associated company, RKM Powergen Pvt Ltd (RKM), coupled with share of higher losses from RKM. Revenue for the three-month period dropped 13.89% year-on-year (YoY) to RM125.74 million on slower work progress on the Light Rail Transit Line 3 (LRT3) project, the construction and engineering concern noted in its exchange filing yesterday. For the financial year ended Dec 31, Mudajaya reported a RM396.24 million net loss or 67 sen net loss per share compared to a net loss of RM123.91 million or loss per share of 22.46 sen in FY17, mainly due to losses at RKM and the impairment on investment in RKM and the long overdue receivable from RKM arising from the equipment supply contracts. Total revenue rose 39.84% YoY to RM762.66 million due to the development of the 49MW solar photovoltaic energy plant in Perak. Pending finalisation of LRT3 project contract value revision, the group’s order book of RM1.8 billion as at the reporting date is expected to sustain its operations over the next two to three years.
 
WCT profit down on depressed margins, finance costs
WCT Holdings Bhd’s net profit contracted 97.4% year-on-year (YoY) to RM3.49 million for the fourth quarter ended Dec 31, 2018r on lower profit margins and higher finance costs. In an exchange filing yesterday, the engineering, construction and property company said lower margins from ongoing construction works and property developments, weak property sales and higher finance costs weighed on its earnings. Revenue for the quarter improved 8.5%YoY to RM737.9 million on higher billings from local infrastructure and building projects. For the full year 2018 (FY18), net profit fell 51% YoY to RM111.78 million while turnover rose 16.5% to RM2.33 billion. The company stated its RM2.5 billion construction order book will support its engineering and construction division while it looks to market its unsold properties and divest its idle land bank. WCT will further undertake de-gearing initiatives to strengthen its balance sheet. The company declared a 1.71 sen dividend for FY18.
 
Boustead slips into red with RM455m net loss
Boustead Holdings Bhd slipped into the red in the fourth quarter ended Dec 31, 2018 (4Q18) with a RM455 million net loss as compared to the RM77.1 million net profit a registered ain 4Q17, impacted by provisions and impairments in its heavy industries division. Its plantation division also incurred a loss while the other divisions recorded lacklustre results. Revenue for the quarter remained flat year-on-year (YoY) at RM3.02 billion in 4Q. For the financial year ended Dec 31, 2018 (FY18), Boustead reported a RM469.2 million net loss compared to a RM436.2 million net profit in the previous year. Revenue for the year remained unchanged at RM10.19 billion as against RM10.24 billion in FY17. Boustead expects 2019 to be another challenging year, on both global and domestic fronts, it noted in its exchange filing yesterday. 
 
PPB 4Q profit down on Wilmar asset
PPB Group Bhd posted a 40.3% year-on-year (YoY) decline in net profit of RM221.34 million for the fourth quarter ended Dec 31 last year (4Q18) on lower contribution from its Wilmar International Ltd investment. This was in spite of the company growing its revenue by 3.6% YoY to RM1.16 billion over the same period on higher contributions from its core businesses. For the full year 2018 (FY18), net profit was down 9.3% YoY at RM1.07 billion while turnover grew 5.8% to RM4.53 billion. PPB said its Singapore-listed edible oils asset Wilmar brought in a lower contribution of RM837 million in FY18 against the RM947 million managed in FY17. Meanwhile, lower profits from the group’s agribusiness and consumer products division also weighed on earnings. In an exchange filing yesterday, PPB noted its FY19 performance will largely depend on Wilmar’s business performance despite its other core businesses predicted to perform satisfactorily. The company declared a 20 sen dividend in 4Q, bringing total dividends for FY18 to 28 sen.
 
Affin Bank 4Q earnings drop on higher interest expense
Affin Bank Bhd’s net profit for the fourth quarter ended Dec 31, 2018 (4Q18) dropped 15.21% year-on-year (YoY) to RM143.75 million due to higher interest expense. Earnings per share for the quarter was lower at 7.40 sen compared to 8.92 sen in 4Q17. Revenue for the three months decreased 15.17% YoY to RM453.56 million, the banking group noted in an exchange filing yesterday. For the financial year ended Dec 31, 2018 (FY18), the bank’s net profit increased 20.4% YoY to RM503.09 million on higher net fee and commission income, net gain/losses on financial instruments and Islamic banking income, and the reduction in allowance for credit impairment losses. Its yearly revenue grew 23.08% YoY to RM1.92 billion. Affin Bank noted its strategic focus for 2019 will remain on retail and business banking segments, especially in the small and medium enterprises (SME) segment as well as transactional banking. The bank will also be focusing on brand visibility, compliance requirements, improving asset quality and liquidity management.
 
Brahim’s now a PN17 company
Brahim’s Holdings Bhd has become a Practice Note 17 (PN17) company under the Main Market Listing Requirements of Bursa Malaysia Securities Bhd. Its shareholders’ equity is now less than RM40.0 million represented 25% or less of its issued capital, it exchange filing yesterday stated. The company is now required to submit a regularisation plan to the Securities Commission (SC) within the timeframe stipulated, it stated.