Hup Seng Industries, Top Glove, Gadang, MAHB, Eco World Development, Eco World International, Handal, NetX, Mlabs, Fintec, Southern Cable, AirAsia X, Bioalpha, Revenue and Perdana Petroleum
KUALA LUMPUR (September 17): Based on today’s business announcements and news, businesses targeted on Monday (September 20) may include: Hup Seng Industries Bhd, Top Glove Corp Bhd, Gadang Holdings Bhd , Malaysia Airports Holdings Bhd (MAHB), Eco World Development Group Bhd, Eco World International Bhd, Handal Energy Bhd, NetX Holdings Bhd, MLabs Systems Bhd, Fintec Global Bhd, Southern Cable Group Bhd, AirAsia X Bhd (AAX), Bioalpha Holdings Bhd, Revenue Group Bhd and Perdana Petroleum Bhd.
Biscuiter Hup Seng Industries Bhd said it has temporarily suspended the operation of the packaging machine at its Johor plant for disinfection purposes in order to curb the spread of Covid-19. Its 100% subsidiary Hup Seng Perusahaan Makanan (M) Sdn Bhd located in the Tongkang Pecah industrial zone in Batu Pahat, received a notice from the Ministry of Health on Thursday asking it to temporarily suspend the operation of a packaging machine. from September 16 to 22. The group said production operations in all other unaffected areas remained unchanged.
Top Glove Corp BhdRM’s net profit fell 70.14% to RM 607.95 million in the fourth quarter ended August 31, 2021 (4QFY21), from RM 2.04 billion in the previous quarter. This is the first time that the quarterly net profit has fallen below the RM 1 billion mark since 4QFY20. Revenue almost halved to RM 2.12 billion in 4QFY21, compared to RM 4.16 billion in 3QFY21. On an annual basis, net profit fell 48.37% from RM 1.18 billion in 4QFY20, while revenue fell 31.95% from RM 3.11 billion. Net profit for the year jumped 349.1% to RM 7.87 billion from RM 1.75 billion in FY20 as revenue more than doubled to RM 16.41 billion from 7.24 billion RM.
Top Glove has also said it will resume exporting and selling its gloves from Malaysia to the United States by the end of September this year, after the ban on customs and border protection (CBP ) from the United States effective September 10, 2021, after more than a year of prohibition on shipping goods to the United States market. Its chief executive, Lim Cheong Guan, said the company has a good relationship with its US customers and is in regular contact with them. Therefore, these customers are all ready to do business with the company after the lifting of the import ban on Top Glove subsidiaries. In this context, he also said that this positive development is expected to boost sales of Top Glove’s Malaysian operations in the United States, which accounted for 15% of the group’s total sales for the fiscal year ended August 31, 2021 (FY21).
Gadang Holdings Bhd was awarded a RM100.34 million subcontract under the Central Spine Road (CSR) project, a 347 km toll free highway for motorists traveling between Bentong to Pahang and Kelantan. The construction engineering group said the works included demolition, site clearing, earthworks and construction of an access bridge in Kuala Berang, with the 30-month subcontract to be completed by ‘by the first quarter of 2024.
Malaysia Airports Holdings Bhd (MAHB) succeeded in fending off a huge part of a claim made by a construction company involved in the modernization of Penang International Airport.
Syarikat Pembinaan Anggerik Sdn Bhd (SPASB), who claimed 66.83 million ringgit in a lawsuit against MAHB, received only 9.93 million ringgit plus interest from the High Court. The 9.93 million RM was intended for balance of works payments. The court, however, rejected SPASB’s claim for acceleration fees and extension fees.
Eco World Development Group BhdNet profit for the third quarter ended July 31, 2021 (3QFY21) edged down 1.9% to RM 35.15 million from RM 35.83 million in the same period a year ago. Revenue fell 6.06% to RM 448.91 million from RM 477.87 million in the same quarter last year, mainly due to the sale of more or near-completed properties, which allowed at a higher percentage of income to be immediately recognized at the end of the sale of the units. However, for the cumulative nine-month period, Eco World’s net profit increased 59.19% to RM 139.9 million from RM 87.88 million in the same period a year earlier, while that cumulative revenue increased 1.14% to RM 1.38 billion, from RM 1. 0.36 billion previously.
Eco World International Bhd(EWI) ‘s net profit for the third quarter ended July 31, 2021 (3QFY21) fell 93.39% to RM 2.49 million from RM 37.63 million a year ago. Quarterly revenue fell 79.34% to RM127.13 million from RM615.44 million. The group said the decline in profits was mainly due to the lower number of units sold to customers delivered in the current quarter by its Australian projects, as well as a lower share of profits from its UK joint ventures. For the nine-month period ended July 31, 2021, however, EWI saw its cumulative net profit increase 11.04% to RM 69.83 million from RM 62.89 million a year earlier, while revenue fell 12.61% to RM 537.97 million from RM 615. 6 million.
Handal Energy Bhd was awarded a new contract from Tanjung Offshore Services Sdn Bhd for the supply of portable crane equipment and a set of services. The contract started on July 2 and the estimated completion date is December 2021. The contract does not have a specified value, as it is a “tender” whereby a work order will be issued at Tanjung Offshore’s discretion based on scheduled activities and rates.
Fintech Global Bhdthe partner NetX Holdings Bhd has become a major shareholder of MLabs Systems Bhd after having acquired a 5.52% stake in the loss-making company. NetX said it acquired the stake, comprising 80 million shares, on the open market through its subsidiary First United Technology Ltd on September 15 for RM 3.62 million, an average of 4.5 sen per action. With the acquisition, First United owns 104.46 million shares or a 7.28% stake in MLabs.
Southern Cable Group Bhd received approval from the Securities Commission Malaysia to transfer its main market listing status from Bursa Malaysia, 11 months after its debut on the ACE market in October 2020. Southern Cable, which manufactures cables and wires used for industries electricity and telecommunications, said the transfer of listing status is expected in the fourth quarter of this year, subject to the approval of Bursa Securities.
AirAsia X Bhd (AAX) has made “substantial progress” in months-long talks with creditors, aiming to call meetings with them to vote on a restructuring plan by the end of October, its chief executive said. Benyamin Ismail said Reuters that negotiations with lessors, aircraft manufacturer Airbus SE and service providers had progressed, but declined to share details. Benyamin said talks with creditors are in the final stages and everyone has indicated they want the airline to restructure.
Bioalpha Holdings Bhdhas signed an agreement with Suzhou Medicalsystem Technology Co Ltd (MEDIC) to commercialize Biolapha’s proprietary herbal formulations and products in China in the near future. Bioalpha said the proposed joint venture aims to capitalize on MEDIC’s regional expertise in China, as it is well known in many hospitals around the country. Bioalpha added that the main planned activities of the joint venture include research and development and clinical trials to support the efficacy of Biolapha’s proprietary herbal formulations and products.
Electronic payment company Bhd Income Group saw its net profit for its fourth financial quarter ended June 30, 2021 (4QFY21) drop 65.5% to RM 1.28 million from RM 3.71 million in 3QFY21, due to lower terminal sales electronic data capture (EDC), although the rental and maintenance is Rose’s responsibility. This was due to a 39.6% QoQ drop in revenue to RM17.55 million as the period under review saw the reimposition of the Full Movement Control Order. Year over year, the 4QFY21 saw lower sales of EDC terminals. However, Revenue Group recorded higher returns from the rental and maintenance of EDC terminals. The latter, coupled with the more relaxed MCO compared to the 4QFY20, helped increase the group’s net profit by 181.7% year-on-year to RM 1.28 million, from RM 455,000. However, revenue fell 25.2% to RM17.55 million, compared to RM 23.48 million in 4QFY20.
Perdana Petroleum BhdRM’s net loss for the second quarter ended June 30, 2021 (2QFY22) widened to RM 39.12 million from RM 2.88 million recorded a year ago, thanks to a decline of nearly 36 % of quarterly revenue to RM 38.56 million, from RM 60 million previously. The financial performance of the company was adversely affected by an impairment of property, plant and equipment amounting to RM 29.9 million during the quarter under review. Perdana Petroleum also attributed lower revenues and larger losses to lower vessel utilization at 51%, down from 58% in the previous corresponding quarter.