MAHB’s network of airports (including Istanbul SGIA) recorded 61.7million passengers in YTD 2017, representing a growth of 9.5% over YTD 2016. International traffic improved by 13.0% while domestic passengers traffic increased by 6.8%. Correspondingly, aircraft movements improved by 3.1% with international and domestic aircraft movements increasing by 4.5% and 2.3% respectively.
The improvement in passenger growth is driven by a new level of growth contributed by visa relaxation measures for China and India, new additions in the local travelling population, increase in Umrah travel, competitive fares as well as favourable exchange rate for foreign tourists.
The increase in demand was adequately supported by increase in airlines’ seat capacity. Seat capacity supply estimates for the second half of 2017 indicate a 6% growth over the second half of 2016, setting the tone for a solid year for passenger growth.
…the decrease in the sales volume due to the decrease in production volume attributable to unplanned water interruption by Syarikat Air Johor in April 2017 and lower sales due to festive holiday in June 2017. Partially offsetting the effects of the decrease in sales volume on Group revenue was a 19.0% increase in average selling price.
While the group had disclosed the water supply disruption in its IPO prospectus, the significance of the impact was not made clear as analysts did not expect the incident would have taken a heavy toll on its profit.
“After this year, the maintenance and turnaround work — which is done every five years or so — will be completed. LCT’s refining margin is a bigger factor but the expectation is that margins should be maintained next year.”
The main risk for a lower production than initially anticipated is mainly continued labour shortages, in relation to especially the workforce assigned to crop harvesting and evacuation, which undoubtedly will have a negative impact on all plantations companies during the forthcoming peak crop expected in July-Sep 2017.
…with historically high U.S. soy bean plantings that took place in early 2017 and which will be harvested from September onwards, there may likely be a large recovery in global vegetable oil stocks. Whilst this would put a lid on further upwarad momentum on prices, the weather across the farming regions of the U.S. will be a significant price driver during the coming quarter and must be a factor closely watched.
…unfavorable sales mix in industrial division; cessation of a loss making subsidiary in China in Q4 2016 in polymer engineering division; lower pre-tax loss due to better operating environment and cost management in food division; closure costs arising from cessation of business by a subsidiary and losses from new concept restaurants in restaurant division…
After the successful launch of iMedic in Malaysia, Palette in partnership with HSC Hospital has started a patient recruitment campaign. In addition, development has started on the next phase of iMedic software targeted at smaller clinics and individual medical practitioners. This will be a multi platform solution offering iMedic’s unique features to a market segment that at the moment only has access to old style clinic management systems. It is anticipated this development will be completed by Q4 2017. Further development is also ongoing with software being developed to integrate a wider range of medical devices and IOT sensors into the iMedic platform.
…working on the variation of K-card that allows 2-way communications for medical equipment uses. This technology would connect such equipment to the service provider directly and remotely through internet cloud. The significant of this 2-way communications would potentially save time, cost and life for people that require the services of service provider on regular basis. One of the specific example of such medical device is CPAP (Continuous Positive Airway Pressure) machine for those with sleep apnea problem. We are currently working with Sefam (a French Company) and u-wish (a Taiwan Company) to bundle our Kcard with their CPAP machine. The Group has started to supply to u-Wish to be bundle with their CPAP machine. In addition, the Company through its subsidiary in Taiwan has successfully market our K-card solution to a fitness company. Although the revenue contribution is not yet significant, but it does show the potential of our chip.
Input costs in the near to mid term for F&B Thailand and F&B Malaysia are expected to increase following the uptrends in packaging cost, milk powder and sugar prices.
…higher costs of raw materials mainly caused by higher average prices of plastic resins in the current quarter. The unfavourable conversion of selling prices in USD for the export sales due to strengthening of MYR had also contributed to the lower PBT…
…to strengthen operational and financial performance by continuing the implementation of a series of process improvement and ongoing expansion plans to achieve better overall operational and cost efficiency.
With direct ownership in chemical and polymer coating, as well as the pharmaceutical company following the completion of the proposed distribution and capital reduction, the entitled shareholders of the company can manage their investment exposure or rebalance their portfolio in each of these businesses independent of each other according to their individual investment objectives.
As the purpose of undertaking the internal reorganisation is to facilitate the proposed distribution and capital reduction, CCM will seek an exemption from the Securities Commission from the obligation to undertake the mandatory offer.