Corporate results: AirAsia X, Axis REIT, Far East, MMC and Kimlun

AirAsia X post lower passenger load in 1Q
AirAsia X Bhd has posted a passenger load factor (PLF) of 83% for the first quarter (1Q) of 2019 versues 84% in the same period last year. In a statement yesterday, the low cost carrier stated the number of passengers carried during the quarter eased 5% to 1.5 million. The company’s available seats per kilometre also declined 5% due to shorter stage routes in operation following the termination of Tehran, Kathmandu and Male flights after the 1Q of 2018. It has began services to the Taipei-Osaka route and launched direct flights to Fukuoka in February 2019, with both recording strong PLF. AirAsia X added has terminated the Auckland, New Zealand, flights in February 2019 and realigned capacity to selected routes during the quarter, namely Taipei, Gold Coast, Perth and Sydney with the aim to rise yields. The carrier’s fleet size remains at 24 A330s as end of March. The PLF for AirAsia X Thailand and AirAsia X Indonesia stood at 90% and 68% respectively, it added. AirAsia X Thailand did not have any new routes introduced while AirAsia X Indonesia will operate on a non-scheduled flight basis moving forward in the wake of suspension of its scheduled flights.
 
Axis REIT 1Q profit drops 15.4%
Axis Real Estate Investment Trust’s (REIT) net profit for the first quarter ended Mar 31, 2019 (1Q19) dropped 15.4% year-on-year (YoY) to RM26.59 million due to higher non-property expenses. In an exchange filing yesterday, the company noted a RM17.45 million non-property expenses for the period compared to a RM14.6 million in 1Q18. Earnings per unit for the quarter was lower at 2.15 sen versus 2.55 sen in 1Q18. Revenue for the period increased 19.25% YoY to RM53.77 million. Axis REIT has proposed a first interim income distribution of 2.35 sen per unit for the quarter, to be paid on May 31, 2019.
 
Far East buys plantation land for RM183m
Far East Holdings Bhd intends to buy a 2,134 ha oil palm plantation land from Harn Len Corporation Bhd for RM182.99 million. The purchase price is expected to be funded with internally funds and bank borrowings, Far East noted in an exchange filing yesterday. Far East noted the acquisition is in line with its expansion plan and broaden its core income base through increased plantation acreage at a reasonable cost and at a strategic location vis-a-vis its existing plantation assets. The proposed acquisition is expected to be completed by the second half of 2019.
 
MMC confirms Pan Borneo Highway PDP contract termination
MMC Corp Bhd confirmed the termination of Borneo Highway PDP Sdn Bhd (BHP), in which it holds a 20% indirect stake, as the project delivery partner (PDP) for the Pan Borneo Highway. In an exchange filing yesterday, the utilities and infrastructure company stated the decision was made by the Malaysian government on grounds of national interest. The termination will be effective five months after the company was notified of the decision on April 22 this year and is not expected to have a significant bearing on its earnings for the ongoing 2019 fiscal year. MMC controls a 20% effective interest in BHP via its jointly-controlled entity UEM MMC Joint Venture Sdn Bhd. BHP was first brought on as the PDP for the Sabah portion of the Pan Borneo Highway on April 11, 2016. Putrajaya is seeking to bring down the cost of the overall 2,324km highway project which is presently estimated to cost RM29 billion.The cancelled PDP contract is among the ways identified to bring down the cost and sees some 25 contracts being handed over to the Sabah state government who is now in charge of implementing the project. 
 
Kimlun bags RM204m contract 
Kimlun Corp Bhd’s wholly-owned subsidiary, Kimlun Sdn Bhd, has bagged a building contract for two blocks of apartments in Selangor worth RM204.4 million from Rexpoint Resources Sdn Bhd. Construction works are expected to be completed by end of January 2022, the company noted in its exchange filing yesterday.

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