Corporate results: PetChem, EA Technique, Pharmaniaga, Sunway Construction and AirAsia X

PetChem enters into SPA agreement with Da Vinci
Petronas Chemicals Group Bhd (PetChem) is buying Da Vinci Group B.V. from Bencis Capital Partners for €163 million cash to expand its specialty chemicals portfolio.
The deal, which is also aimed at boosting its position as an innovative solutions provider, will see PetChem acquire a 100% stake in the Netherlands-based silicone, lube oil additives and chemicals manufacturer. In an exchange filing yesterday, PetChem noted the acquisition will enhance its competitive position in attractive end-markets, especially in Asia Pacific, such as personal care, construction, paints and coating, electronics, automotive and healthcare. The acquisition, which is not subject to shareholders’ approval, will also mark PetChem’s first foray into specialty chemicals via inorganic growth.
EA Technique charter contracts worth RM478m 
EA Technique (M) Bhd charter contract for three vessels from PETCO Trading Labuan Coy Ltd (PTLCL). The contracts are worth a total RM478.24 million over five years with options of one year extensions, EA noted in an exchange filing yesterday. The contract for Vessel 1 and 2 commence in December 2020 while Vessel 3 shall commence in January 2021.  
Pharmaniaga 1Q profit up on M’sian, Indonesian income
Pharmaniaga Bhd’s net profit rose 11.5% year-on-year to RM19.62 million for the first quarter (1Q) ended March 31, 2019, on stronger contributions from its Malaysian and Indonesian operations. Revenue of Malaysia’s largest pharmaceutical company grew 27.2% YoY to RM786.11 million for the period on stronger demand from government and private hospitals in the two countries, its exchange filing yesterday noted.  Earnings were offset by higher marketing and promotional spend as well as higher finance costs incurred in the quarter.  The company declared a six sen dividend for the quarter, representing 79.7% of its earnings per share, which will be paid on June 27. Pharmaniaga noted it intends to expand its presence in the private sector via strategic marketing initiatives while strengthening its Indonesian operations to tap into the immense potential in the country
SunCon 1Q profit falls on lower precast margins, weaker revenue
Sunway Construction Group Bhd’s net profit contracted 13.3% year-on-year (YoY) to RM31.02 million for the first quarter (1Q) ended March 31 on lower precast margins and weaker revenue. The pureplay construction company’s revenue fell 16.8% YoY to RM440.03 million on lower construction and precast income, its exchange filing yesterday revealed. Construction revenue was lower due to delays in major infrastructure projects, namely the third phase of the Light Rail Transit and second Mass Rapid Transit line projects while the bulk of turnover from precast works are expected to come in later this year. For 2019, SunCon stated it is targeting RM1.5 billion in new orders. To-date, the construction group secured RM1 billion in new orders – bringing its total outstanding order book to RM5.7 billion.
AirAsia X 1Q profit up on forex gains
AirAsia X Bhd’s net profit jumped 4.4% year-on-year (YoY) to RM43.33 million for the first quarter ended March 31, 2019 (1Q19), on foreign exchange gains despite revenue being down for the quarter. In an exchange filing yesterday, the long haul low cost carrier stated the strengthening of the ringgit against the US dollar at the end of the 1Q resulted in an unrealised forex gain for the company. Turnover for the quarter was down 7.9% YoY at RM1.17 billion on the lower average base fare of RM513 (versus RM527 in 1Q18) – partially offset by the decrease in cost per available seat kilometres due to lower fuel expenses incurred. Its Thailand operations will add up to five additional aircrafts while its fleet in Malaysia will remain at 24 aircrafts amidst cost reduction efforts via digitalisation. AirAsia X and AirAsia Bhd are currently embroiled in a legal action initiated by Malaysia Airports Holdings Bhd which is claiming RM36.11 million in unpaid passenger service charges. The low cost carriers has called in the Malaysian Aviation Commission to mediate.


Monday, July 26, 2021

Pharmaniaga plans to export Sinovac

Friday, October 13, 2017

SunCon bags RM140m construction works