Categories: MarketsSnap News

Corporate results : Star Media, IJM, Boustead, Lamboplace and MPI

Star Media 2Q profit higher on cost management
Star Media Group Bhd’s net profit rose 17.7% year-on-year (YoY) to RM1.66 million for its second quarter ended June 30 this year as better cost management drove higher profitability for the print and digital business segment. Revenue fell 21.9% YoY for the period to RM77.72 million as turnover from the radio broadcasting and event and exhibition businesses came in lower. Radio revenue was down on reduce spending by advertisers while lesser events resulted in lower turnover for the latter segment. For the first half of the year, the company’s net profit contracted 59.1% YoY to 5.2 million on lower print and digital revenue as group turnover fell 23.2% YoY to RM160.29 million, its exchange filing yesterday noted. The company, which owns and operates The Star newspaper and its online version The Star Online, expects robust revenue growth from the digital segment for the remainder of the year while the radio business should perform satisfactorily despite the slowing economy.

IJM profit down despite stronger revenue
IJM Corp Bhd posted a 5.3% year-on-year (YoY) drop in net profit to RM59.42 million for its first quarter ended June 30 this year (1QFY20) on higher foreign exchange losses and lower construction and plantation revenue. Turnover from its construction division, which made up 33.6% of group revenue in 1Q19, came in lower as major projects that contributed to the corresponding quarter last year were since completed. Plantation revenue, was lower on weaker commodity prices and the decline in crude palm oil sales volume. IJM’s revenue for the quarter grew 6.9% YoY to RM1.54 billion on higher property and infrastructure turnover which rose on higher sales and expansion of cargo throughput handled respectively. In an exchange filing yesterday, IJM stated it expects a difficult fiscal year ahead on the challenging prospects across all operating segments except tolls and port operations which will continue to provide recurrent revenue streams for the group.

Boustead in the black on land disposal
Boustead Holdings Bhd recognising a RM119.5 million gain from the disposal of a plantation land for its second quarter ended June 30 this year (2Q19) which enabled the company to post a RM24.3 million net profit for the quarter against a net loss of RM27.6 million in 2Q18. Revenue grew 4.5% year-on-year (YoY) to RM2.54 billion. For the first half of the year (1H19), the company’s net profit came in at RM1.9 million compared to a RM21.5 million net loss in the corresponding period last year, while group turnover rose 6.8% YoY to RM5.05 billion. Revenue for the period was supported by stronger contributions from the pharmaceutical, heavy industries and property divisions, though plantation revenue fell due to the decline in palm product prices. In an exchange filing yesterday, the company said 2H19 is expected to be challenging on elevated uncertainty arising from ongoing global trade disputes. However, it said the diversified nature of the group, covering six core areas of the domestic economy, will make it more resilient to economic shocks. In a separate filing on the same day, the company appointed Datuk Zainun Aishah Ahman as a senior independent non-ED effective yesterday. The 72-year old held various senior positions in Malaysian Industrial Development Authority over her 35 years of service.

Lamboplace-Ecode to collaborate on marketing activities
Lambo Group Bhd’s e-commerce unit, Lamboplace Sdn Bhd, is partnering Axiata Digital Ecode Sdn Bhd, a payment service provider, to collaborate on mutually beneficial marketing activities. In an exchange filing yesterday, the company said the companies inked a memorandum of understanding (MoU) with the aim of collaborating on and exploring opportunities to develop, support and enrich marketing activities in fields that will benefit both parties. Under the agreement, the companies will also engage in any other projects that will be mutually identified and agreed upon by both parties at a later stage. The MoU will be valid for a period of three years with either party able to terminate the agreement by providing one month’s written notice to the other or renew the MoU if mutually agreed upon. Lamboplace is new to the e-commerce business, having only been founded in August last year, and said it offers close to 30,000 products from over 300 brands via its digital platform that can be accessed as a website or app.

MPI 4Q weaker on US-China trade war
Malaysian Pacific Industries Bhd’s (MPI) net profit contracted 23% year-on-year (YoY) as US-China trade tensions negatively impacted the group’s key markets. The integrated circuit and semiconductor device manufacturer posted a RM30.06 million profit for its fourth quarter ended June 30 this year against the RM39.04 million managed in the corresponding period last year. Revenue for the quarter fell 12% YoY to RM345.92 million on lower contributions from its Asian, US and European markets. The weaker profitability was partially offset by improved cost controls. For its full-year performance, the company’s net profit was down 9.9% YoY at RM128.33 million while revenue fell 3.2% YoY to RM1.49 billion. MPI has declared a 27 sen dividend for the fiscal year. In an exchange filing yesterday, the company said its 2020 fiscal year is expected to remain challenging due to continued uncertainties in the global economy.

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