Company Notes 2017.12.01

GHL Systems Q3 FY2017 Results

The Group has successfully deployed since 2015, its TPA merchant acquiring tie-ups with CIMB (physical merchants) and Global Payments (online and physical merchants) and in 2016, additional tie-ups with Alipay (Thailand) and RCBC group (Philippines). GHL group has commenced merchant acquiring for Alipay in Malaysia in 2Q17 and AFPI (Beep card) in Philippines for merchant acquiring in expected in 4Q17. The group remains optimistic of further developing TPA as a key growth engine for the group given the changes in the payment landscape as e-payments gain further traction as driven by not only regulatory directives but also positive changes in consumer preferences towards e-payments.


JHM Consolidated Q3 FY2017 Results

The declined in revenue was mainly due to worldwide components shortage and extended lead times in the supply chain.

The average inventory turnover days has reduced from 53 days to 39 days as a result of the continuing efforts of the Group in improving the inventory turnover efficiently.

Despite of facing the worldwide shortage of raw materials, particularly the passives, the Group’s outlook remains strong and bright with the growing acceptance of LED lamps in automotive market.


Dufu Technology Q3 FY2017 Results

We expect sales to continue to remain favorable towards end of 2017 as our major product is driven by the growth in high-capacity nearline HDDs as well as stabilization of client storage demand. The long-term future of HDDs are likely rests with high capacity HDDs, particularly in data centers serving cloud storage applications. The demand for high capacity storage drives, enhanced performance, and lower storage cost is set to rise. Global internet penetration, the rise in e-commerce in emerging markets, and the current trend for high-resolution media standards are the likely drivers for the continuing rise in global data storage demand.


Perak Transit Q3 FY2017 Results

The outlook of integrated public transportation terminal operations segment is expected to the favourable driven by the Group’s plans for expansion in other part of Perak, whereby the construction of the Terminal Kampar has commenced and it is on schedule. It is expected to be completed by 4th quarter of 2018. In addition to Terminal Kampar, the Group’s plans include similar integrated public transportation terminal in Bidor and Tronoh. As of this juncture, the Group is unable to determine the construction cost for the terminals to be built as the construction project is still at its preliminary stage and the approvals for construction have yet to be obtained from the relevant authorities. In this regards to the status of the Bidor and Tronoh lands, the acquisition of the lands are pending completion subject
to the fulfilment of the condition precedent as announced on 19 January 2017 (Bidor), 18 September 2017 (Bidor), 28 March 2017 (Tronoh) and 27 November 2017 (Tronoh) respectively.

The Group’s bus operations segments outlook is also positive driven by Stage Bus Service Transformation programme as the operation runs all the 19 approved routes since September 2016 with 45 express buses fully delivered in March 2017.


Pos Malaysia Q2 FY2018 Results

The Group’s prospects remain positive as our business continues to be largely driven by the strong e-Commerce growth in Malaysia and we are optimistic that the establishment of the Digital Free Trade Zone (DFTZ) will drive cross-border e-Commerce volume, especially for Malaysian small and medium enterprises (SMEs). This is expected to be positive for the prospects of our e-Commerce related businesses, namely our courier, eFulfilment, air cargo logistics and international mail business.

On the digital front, we are looking to introduce digital services that are relevant to our customers as digitalisation and demographic changes have encouraged us to be more innovative in providing services that suit the changing lifestyle needs of the Malaysian public, especially the younger generation. Accordingly, we expect to launch our Digital Mailbox product in early 2018 that will provide a range of digital services catering to mobile lifestyles. We are confident that our Digital Mailbox will, over time, become a key digital product offering.


EG Industries Q1 FY2018 Results

The Group is in the midst of construction of the IPC hub and expects to begin its IPC operations in December 2017. With the commencement of IPC operations, the Group is expected to obtain more competitive raw material prices through larger scale of procurement activities to maintain its competitiveness in global Electronic Manufacturing Services (“EMS”) market.


CAB Cakaran Q4 FY2017 Results

The integrated poultry farming and processing division’s performance in the next quarter may be moderately affected by the lower average selling price of broilers but will be mitigated by the lower cost of feeds. The recent strengthening of the Malaysian Ringgit and the world wide over supply of corn and soya, has contributed to the lower cost of feeds.

The value added food products manufacturing and trading division’s performance will be impacted by the continuous losses at Farm’s Best Food Industries Sdn. Bhd.. Management expects the performance of this division to show improvement after the measure undertaken to improve operational efficiency as well as the upgrading of facilities are completed over the next few months.


Ta Ann Q3 FY2017 Results

Performance for the palm oil sector is expected to remain as the main profit contributor in the coming quarter. For timber sector, the underperformance is due to the low logs production in compliance with the certification exercise as well as the restricting logs export quota of 20% that took effect in July 2017.

Given to the low plywood inventory in Japan coupled with the infrastructure construction works for the coming Olympics which has accepted the Company plywood products for the said construction works, we expect the timber market to rebound.


OCK Group Q3 FY2017 Results

The Group aims to grow its recurring revenue business via build-own-and-lease and acquiring existing tower sites operators in ASEAN. For our tower leasing business expansion, the Group is leveraging on its established presence in ASEAN and its vast experiences in building telecommunication infrastructures and site maintenance of telecommunication infrastructure. The build-own-and-lease business model is based on building, owning and leasing back the tower sites to telecommunication operators over a long-term period.


Notion Vtec Q4 FY2017 Results

The auto braking plungers business is expected to have a double-digit growth in FY2018 especially in electric and hybrid cars. The production for the lifestyle consumer electronics segment will take to production as soon as possible as it is a high volume product. We have also made inroads to a major MNC production equipment maker in the semi-conductor space which has good prospects. The Group continues to invest in new technologies and diversifying its customer and industry bases.

Finally, due to the need to conserve cash in the light of the fire incident the Board has decided to defer any dividend payment for this and next quarter until things are back to normal.


IQ Group Q2 FY2018 Results

The Group’s first half year performance has been below expectations. Sales slowed during this period and performance was further impacted by some delays in the conclusion of new product sales. IQ is however blessed with considerable opportunity from both new and established business relations with on-going product development and related planned launches in the pipeline. The current volume of product development requirements is good from a new business perspective, but challenging from a resource and timing standpoint. We see that the current conditions will remain throughout the remainder of this financial year, but going forward thereafter we anticipate positive performance as the various new products are rolled out into the market. Improvements to IQ’s R&D structure are already implemented to accelerate results and to better position our speed to opportunity going forward.

Paper mill operations to boost BHS Industries’ earnings

As it stands BHS earlier this month signed a memorandum of understanding with China Nuclear Industry Huaxing Construction Co Ltd to jointly develop the second and third phases of the project. Phase 2 involves a factory with the capacity to produce 100,000 tonnes of box liner paper as well as 120,000 tonnes of corrugated paper. Meanwhile, Phase 3 will involve another factory with a capacity to produce 65,000 tonnes of tissue paper. Interestingly, Lim added that, “We are targeting to give the award on the final negotiation to the Chinese party for the main building of the factory (Phase 1 for 10,000 tonnes wood-free pulp and paper plant).”

Note that BHS has secured a five-year contract from the Malaysian government to publish past examination papers. It also disposed of a plot of land (from the 410-acre GTP project) for RM5.3 million to a third party to develop. The group is still looking for potential partners to jointly develop the project’s fourth and fifth phases. Phase 4 will involve the construction and development of a feed mill with production capacity of 30,000 tonnes of agro-feed using the microbial fermentation technology, as well as a fertiliser plant with a production capacity of 50,000 tonnes of fertiliser using the by-products produced from the biogas plant.

Phase 5 has been earmarked for light industries involving the construction and development of packaging and printing factories. Additionally, BHS is also looking to expand the GTP model to other states. The group signed a memorandum of understanding with Sarawak Land Consolidation and Rehabilitation Authority subsidiary Bau Palm Oil Mill Sdn Bhd (Bapom) on Nov 10 to jointly develop, implement and finance a waste management project to convert the palm oil biomass, which is supplied by Bapom into commercially viable products. On top of that, BHS is actively looking to develop a third GTP in Johor in the near future; a first step before spinning off the concept to other states as well. “We are targeting Johor as there are many palm oil mills over there,” explained Lim, adding that in the next four years the group could be looking at Indonesia for expansion as well.”

Printing and publishing remain the core business of the group, accounting for about 80% of its revenue in FY17. The remaining 20% came from park development and management activities. “[Revenue] contribution is mainly from our book printing and publishing [business] now, but you will soon see it overtaken by GTP Phase 1,” said Lim. He expects the revenue contributions to invert, with 80% of the revenue coming from GTP Pekan and 20% from the existing printing and publishing business.


Top Glove wants to buy Aspion for RM1.3bil to boost profits

Aspion is currently the second-largest producer of surgical gloves in the world, with an annual production of 1.4 billion pieces or an 18% market share. Lim said production at Aspion is projected to increase by another 1.6 billion pieces by 2019 due to the ongoing capacity expansion at its Kulim plant in Kedah. Top Glove has a 12% global market share in this segment, producing 665 million pieces a year. The surgical glove segment, prior to the acquisition, contributed about 5% of Top Glove’s revenue.

Aspion’s Kulim plant houses the company’s most recent technology and research and development centre. It also has manufacturing facilities in Kluang, Johor and Kota Bahru, Kelantan, catering mainly for examination gloves. Aspion owns cutting-edge technology, namely, its Finessis surgical glove which is known to be the only technology capable of reducing the number of viruses (such as HIV) transferred in cases of percutaneous injury.


EG Industries allocates RM30mil for plant expansion

Group chief executive officer and executive director Alex Kang said the expansion, to be funded through bank borrowings and internally generated funds, was to cater to the strong enquiries from customers for box-build contracts, reiterating the company’s stronger proposition in this segment.

“Not only has our box-build segment improved, but also our printed circuit board assembly (PCBA) segment as it remains the main revenue generator for EG Industries.”


Kim Teck Cheong Consolidated to realise its investments in FY19

In March, KTC acquired a 60% equity interest in Grandtop Marketing Sdn Bhd for B$600,000, which is principally engaged in the business of distribution of CPG in Brunei. He said the group plans to further invest in its infrastructure in FY18 — albeit with a smaller allocation — to take advantage of opportunities as they arise. He added that KTC is currently in talks with five to six notable third-party CPG brands in Sabah and Sarawak, which may come on stream in FY18.


Freight Management sees 10% growth in FY18 profit

“There is no such thing as saturation in the market as there are no more avenues to grow. There will always be customers who are looking for improvements in service. We just have to take advantage of our strength to gain market share.”

The sea freight segment will remain the group’s core business. “We have always been very strong in our sea freight segment, so it’s only natural that we try to keep building and growing this particular segment.”

On the group’s e-commerce segment under 65%-owned FM Hubwire Sdn Bhd, Chew said although there is an opportunity to grow, the loss-making business remains a challenge as it is a relatively new area for the group. “We started this about a year ago, but honestly the business has not really gained traction. We are exploring ways to boost the business. Although it may take a while, if we don’t get involved now it will be too late later. It is a challenge now, but we have the resources [to sustain it],” he said. The group, he added, hopes to see some traction in the business by end-FY18, and to turn a profit by FY19.

Company Notes 2017.09.29

Kein Hing International Q1 FY2018 Results

…stronger customer demand for parts/metal components used in TV, fridge, printer and automotive industries.

…the impact from the overhead incurred by the new factory located in Hai Phong, Vietnam as it has yet to achieve the optimal production and sales, higher depreciation charge from new machines invested and the escalating labour costs as a consequence of constraints in labour supply in Malaysia Operation coupled with the wage inflation experienced in Vietnam Operation.


Poh Huat Resources Q3 FY2017 Results

…shipment to the US continued to gain strength following the successful launch of several ranges of panel-based bedroom sets in the previous quarters.

While orders from our North American importers remained strong, we noted a shift in the product mix to the middle and affordable segments of the market.

Our operations in Malaysia incurred higher raw material costs, particularly for boards, solid wood, hardware and finishing materials which have increased markedly over the last few months.

Competition in the market place has also turned keener as consumers demand for trendier and more competitively priced items. We have experienced downward pricing pressure on our products due to competition from other manufacturers. Furniture also has to cater for changing demographics particularly for millennials and younger families who have lower spending power and whom are more comfortable with online purchases and ready-to-assemble products. We have aligned ourselves to respond to these changes by working closely with our customers to develop trendier, market oriented products for the marketplace.


Bison Consolidated Q3 FY2017 Results

Operating expenses were higher in tandem with the increased business volume and the continuous outlets expansion by Bison which also entailed the recruitment of more talents.

Bison is on course in its new stores opening and during the nine-months period under review, there is a net increase of 44 outlets. Bison ended the third quarter with 338 outlets verses 276 as at 31 July 2016.


Comintel Q2 FY2018 Results

For SIMS segment, we will continue to re-organise and to mitigate losses through cost cutting amidst the softer demand experienced by SIMS segment over the past years.

For our renewable green energy project in Kuang, we have passed Initial Operation Date (IOD) with TNB. We expect to complete the Commencement Operation Date (COD) with SEDA in October 2017. Barring any unforseen circumstances, we are expecting the FiTCD (Fit-in-Tariff Commencement Date) to be in October or November 2017. We are hopeful with the commissioning of our advanced gasification green energy system at our Kuang plant, will open a new corridor for us to tap on quickly the vast potential of the demand for our green energy generation system in the region.


LKL International Q1 FY2018 Results

The Group’s venture into the distribution of medical devices in the current FY represents its strategic efforts to diversify its revenue stream within the healthcare sector to cater for evolving market requirements, and offer higher value products to enhance its product portfolios.


Superlon Q1 FY2018 Results

The lower profit before tax is mainly due to the decrease in total gross profit generated from lower volume of sales and higher cost of materials. The lower other income recorded and higher other operating expenses also contributed to decrease in net profit before tax.


VS Industry Q4 FY2017 Results

With the Group’s vertical integration capabilities, it has received substantially higher box-build orders from key customers, particularly during the second half of the financial year ended 31 July 2017. The trend of rising orders is expected to sustain going into the next financial year. To cope with the potential new orders from existing and new customers, the Group has added more production space by constructing a new factory cum warehouse.

On its operations in China, the Group’s Hong Kong-listed subsidiary, V.S. International Group Limited, has recently completed a Rights Issue raising proceeds of HKD105.8 million which shall be used to expand the operations in China and tap into its growing domestic sales.


A-Rank Q4 FY2017 Results

…due to a higher provision of income tax after the special export incentive brought forward had been fully utilised and there was an overprovision of deferred tax in the corresponding quarter last year.


George Kent Malaysia Q2 FY2018 Results

George Kent announced in September the securing of a tender to supply and deliver 650,000 water meters to the Water Supplies Department (“WSD”), Hong Kong. This is the second consecutive time the Group has been successful in the bid which was made under the Group’s subsidiary, George Kent International Pte. Ltd. George Kent will supply the DN15 Brass PSM-T water meter worth US$6.86 million (RM 28.72 million) to WSD within two years in 24 shipments.

To-date, George Kent is the only company that has successfully secured large water meter contracts consecutively from both Hong Kong and Singapore water authorities at the same time, which are renowned for their stringent standards in water meter evaluations


O&C Resources Q4 FY2017 Results

The Group has been facing challenges in its core business of manufacturing and marketing of condoms and baby products, in view of rising raw material prices and operational costs for the past few years. Taking cognizance of this, the Group has made efforts to improve our financial performance and position which include, among others, the Group’s acceptance of a construction contract which led to our Group’s diversification of business to include the construction business. At the same time of maintaining on the existing business undertakings, the Group has also expanded its initial foray in the construction business to include the property development business as well.


Kim Loong Resources Q2 FY2018 Results

As at 31 July 2017, the Group’s total planted area is 14,920 hectares. The age profile of mature area can be analyzed as follows: a) < 3 years (Immature) : 5%; b) 3 – 6 years (Young mature) : 13%; c) 7 – 15 year (Prime mature) : 28%; d) 16 – 20 years (Old mature) : 48%; e) > 20 years (Pre-replanting) : 6%

During the current YTD, the Group has carried out replanting of about 130 hectares.


Cypark Resources Q3 FY2017 Results

We plan to increase our investment in renewable energy projects and expect to have a bigger revenue contribution from the sales of green power. By year 2020, the Renewable Energy segment is expected to contribute more than
RM300 million of recurring revenue.

The launch of our country’s second bidding exercise for Large Scale Solar (LSS) by Suruhanjaya Tenaga in February 2017 has opened up more new opportunities for large, non-subsidised national RE scheme. Cypark currently has been given first right to undertake the turnkey EPCC, management & operation contract to develop 15MW (dc) solar plants by the winners of the first LSS tender.

We are also confident to secure more government contracts for landfill closures and new sanitary landfill projects. We believe that we have strong competitive advantage based on our solid track records of successful completion of 18
landfill closure projects covering total area of about 600 acres nationwide and our success in constructing and operating 1000 tpd sanitary landfill in Negeri Sembilan which is one of the country’s largest and most modern
facilities. We have also submitted many tenders and proposals worth more than RM2 billion and are optimistic that some of the tenders are at advance stage of negotiations which will be likely secured in 2017.

Perak Transit in transition to stronger growth path

“To develop a bus terminal is not easy as we must get approvals and land title from the state and federal authorities.” The land public transport commission often allows only one express bus terminal per council, according to Cheong. He noted that it was necessary to have one bus terminal as part of township development, for instance Kampar.

“We will concentrate on building more terminals instead of focusing on the express or stage buses and our petrol stations, as terminals are long-term assets with recurring income while the value of buses depreciates very quickly.”


Hai-O expects 1Q’s growth momentum to continue

The group plans to roll out new collections of shoes, bags, leatherwear, women’s accessories and eyewear under the “Infinence” brand name this year. The group has also allocated RM10 million for capital spending and has identified suitable shoplots and warehouses for further expansion in its East Malaysian distribution channels.

On overseas expansion, Hew said the group is exploring the Vietnamese market due to the large population there, though the decision to go in or not largely rests on whether the Vietnamese government approves direct-selling licence applications from foreign companies.

“We are discussing with our principal suppliers from China to work out trade settlements using alternative currencies such as renminbi,” he said, as some 40% of the group’s purchases are imports denominated in US dollar.


My EG’s GST monitoring launch set for end-2017

“However, it said all issues have been resolved. MyEG has so far installed 5,000 dongles in Klang Valley in F&B outlets and is targeting to install nationwide by year-end (our earlier target was June 2017).”

“We also expect the company to benefit from selling the compulsory foreign workers’ insurance to the employers. MyEG said it will ensure the welfare of foreign workers, by making sure their salaries are paid and there is no worker abuse by the employers.

“In the next one year, MyEG is targeting to place out 100,000 foreign workers. In our earnings forecast, we assume a more conservative average of 5,000 foreign workers monthly or 60,000 foreign workers annually.

“This would help MyEG generate an average annual revenue of RM60mil. We assume 50% net profit margin for the matching services (in line with the 50% net profit margin from existing foreign worker services) and an annual net profit of RM30mil.”


Asia File to spend RM30mil on foodware production

“We spent about a year to research the demand for disposable foodwares and found the domestic market to be strong. We have invested in the raw materials which we were able to purchase at a very good price. This will enable us to sell competitively and generate good profits.”

…the new products would be marketed under the ABBAWARE.

Lim said that while there was familiarity with the raw materials used in production, the sales and marketing for the products would be a new uncharted area to explore.

Hidden taxes, forex rules deter German business from Malaysia

Hidden taxes, which include non-deductible taxes on refurbishment, maintenance, legal services, and company vehicles, add to the overall corporate tax rate, said MGCC president Peter Lenhardt. “If you look at the cost of refurbishment, there is a tremendous impact on the bottom line of any business, so a lot of them don’t see any reason to spend on maintenance,” he told reporters at the launch of the AHK World Business Outlook 2017.

Lenhardt added that another economic risk which is not unique to Malaysia is the lack of qualified labour. He noted that there is a lack of industrial involvement in vocational training which creates a gap where the workforce is not fully trained to operate in high tech facilities.


Taxmen set their sights on digital economy

“Their profits are subject to corporate income tax as long as the operations are carried out [here]. In short there are no specific corporate rules for taxing the digital economy. The same treatment applies to both the digital and traditional economy. For foreign companies they would only fall within the ambit of Malaysia’s CIT if they have a taxable presence or a permanent establishment here, for example having personnel in Malaysia who are performing the services here.”

“The key determinant would be where the transfer of ownership of the goods take place. [If] it is in Malaysia and the value of the goods exceeds RM500,000 per year, then the foreign company is required to register [for GST] in Malaysia. [If] the goods are imported into Malaysia via air courier services, and [if] the value of the goods does not exceed RM500, then the goods are given relief from GST. Therefore where consignments are kept below RM500, Malaysians can buy goods from overseas which are not subject to GST, and if the goods exceed RM500, this would be collected by the courier service before or upon delivery.”


Taxing digital economy players a daunting task?

“For example, when you buy a product from a foreign e-commerce provider, you use your credit card and the money goes to an offshore bank account, and if the goods sent to Malaysia are not subject to customs duty at the point [of delivery], then the income that the foreign provider makes from providing the goods or services goes overseas, perhaps in [the] Cayman Islands or [the] Netherlands where they may have tax breaks. So that income leaves Malaysia and the foreign company providing the service is not present in Malaysia, so they are not subject to Malaysian income tax. When it comes to GST, there may be a supply of goods and services, but when you have hundreds of thousands of consumers [purchasing goods or services] through digital platforms, [it becomes difficult to track]. So how do you impose tax? [One possibility] is since most of the purchases are done through credit card, they may come up with a new mechanism where the credit card company collects tax due on the goods or services on behalf of the government.”


BNM to implement NSFR ‘no earlier than 2019’

“The NSFR, which complements the liquidity coverage ratio (LCR) that was phased in since 2015, looks for banks to have the liquidity to support their business in the longer horizon. It will help strengthen the liquidity management of the financial system.”

“In addition to that, we are aware of the level of competition in the market today which would encourage the banks to remain competitive with respect to their product offerings, as well as the pricing of their products. We don’t think it (NSFR) will be a factor that could change the pricing of the loans.”

Company Notes 2017.08.25 (Part 3)

Kossan Rubber Industries Q2 FY2017 Results

With the completion of the commissioning of Plant 16 in end-July, the existing annual glove production capacity of the Group has since enlarged to 25 billion pieces, an increase of 3.0 billion pieces of nitrile gloves with the patented Low Derma technology. This plant is expected to contribute to the Group’s earnings gradually from the end of third quarter onward.

Keeping up with the expansion momentum and in need of new glove capacity to cater for increasing demand for the Low Derma technology nitrile gloves, the Group has since commenced the construction works for Plant 17 and 18. These 2 new plants which are equipped with high speed dipping technology and a high degree of automation are capable of producing up to 4.5 billion pieces (1.5 and 3.0 billion pieces respectively) of nitrile gloves per annum once completed in 2018.

The construction works of the integrated Research and Development cum Training Centre (“RDTC”) are progressing well and are expected to complete by end of the year. The RDTC once completed, will propel the Group to another level of achievement and breakthrough of the Group’s R&D efforts as the centre will focus on all areas of new innovations and quality improvements of our products. It will also involve research into engineering and robotic implementations to provide higher automation systems to new and existing facilities with the aim of lowering dependence on manpower.


Lee Swee Kiat Q2 FY2017 Results

The expansion and modernization project for our latex division is near completion. The new line would potentially increase our capacity by 30% and increase the varieties of latex pillows in productions.

Key Raw Material – Centrifuged latex price which had risen by more than 80% in Quarter 1 for the current financial year, has softened recently. The lower latex price would be beneficial to the Group’s margin in the coming months.

The Group is negotiating to acquire the plant & machineries of a small bedding company. The Group would also absorb the key managers as well as a group of skilled production workers from that company.


Perak Transit Q2 FY2017 Results

The outlook of integrated public transportation terminal operations segment is expected to the favorable driven by the Group’s plans for expansion in other parts of Perak, whereby the construction of the Terminal Kampar has commenced and it is on schedule. It is expected to be completed by the 4th quarter of 2018. In addition to Terminal Kampar, the Group’s plans include similar integrated public transportation terminal in Bidor and Tronoh. As of this juncture, the Group is unable to determine the construction cost for the terminals to be built as the construction project is still at its preliminary stage and the approvals for construction have yet to be obtained from the relevant authorities.


Thong Guan Industries Q2 FY2017 Results

The group is scheduled to commission its second nano layer stretch film line and its 8th PVC food wrap line during the current quarter.


GFM Services Q2 FY2017 Results

The Pangkalan Ikan Central Sdn Bhd LKIM deep sea fishing port facilities management contract located at Tanjong Bako, Kuching Sarawak commence operations on 22 July 2017. This project will contribute positively to the Group earnings this year.


Sime Darby Q4 FY2017 Results

Accordingly, the results of the Plantation and Property businesses have been classified as Discontinuing Operations and, upon completion of the Proposal, both Sime Darby Plantation Berhad and Sime Darby Property Berhad would be deconsolidated from the Sime Darby Berhad Group. Going forward, the Group’s businesses would be Industrial, Motors, Logistics and Others.


Luster Industries Q2 FY2017 Results

With the successful rationalization of the manufacturing business and successfully position itself to be an Original Equipment Manufacturer (OEM), manufacturing segment has shown positive growth in profitability.

Pan Cambodian Lottery Corporation Limited (PCL), a 60% owned subsidiary of LIB has successfully grow the business in gaming & leisure segment by increasing the network of agents. The Group is also looking at strategy to increase the number of the digit game products. As for the plan to establish a gaming entertainment center, PCL is looking at the option of leasing the land and building and is currently in the process of discussion with several gaming operators.


DRB-HICOM Q1 FY2018

In line with DRB-HICOM’s effort to turnaround PROTON, the Group had on 23 June 2017 entered into a strategic collaboration with Zhejiang Geely Holding Group Co., Ltd. (“ZGH”) vide a share subscription agreement for ZGH to acquire 49.9% equity interest in PROTON Holdings Berhad (“PROTON”) and for PROTON to divest its indirect 100% entire stake in Lotus Advance Technologies Sdn. Bhd. to ZGH and Etika Automotive Sdn. Bhd. The entry of ZGH as the Strategic Partner is expected to improve PROTON’s competitiveness through infusion of competitive products and technology, advanced manufacturing systems, quality and brand confidence which will allow PROTON to improve its sales domestically and globally especially in South East Asia and the right hand drive markets. In addition, PROTON will also be able to leverage on ZGH Group’s advanced technology, global resources through its extensive business network as well as global best practices. An Extraordinary General Meeting will be convened on 30 August 2017 to seek the shareholders’ approval on the above mentioned transactions.


OpenSys Q2 FY2017 Results

For the remainder of this year, we will continue to roll out even more Cash Recycling Machine from the robust orders we have received in the second quarter of this year.


Muda Holdings Q2 FY2017

The Board believes that the upward price trend of industrial paper will support the domestic selling price for the rest of the year. However, tight supply of waste paper in the domestic market which will translate into higher production cost, coupled with higher depreciation charge and interest cost from the new corrugating production line, will assert negative pressure on the profitability of the Manufacturing Division.


Mega First Q2 FY2017 Results

Being a coal fired thermal plant, the tightening environmental protection policies in China also have the effect of pushing up steam production cost. Heavy investments are necessary to add or modify existing plant and machinery to comply with the new emission standards. Earnings contribution from China is therefore expected to remain weak.


Transocean Holdings Q2 FY2017 Results

Logistics division derived revenues and profits mainly from multinational electronic factories shipments for “loose cargo” or consol cargo trucking services for the routes Pg/Sin/Pg and Pg/Thai/Pg. Continuous pull out of multinational factories from Malaysia particularly the electronic companies from Penang has reduced the cargo volumes and revenues. Furthermore, with the improved infrastructure of Air and Sea Ports in Malaysia, fewer importers and exporters are using Singapore Air and Sea Ports nowadays.

Traditional long haul chartered load sector required a large fleet of trucks operating with low margins.

The group had switched to car parts sector to improve revenues moving consol cargo from Thai/Mal/Sin. Steps also had been taken to convince existing customers to accept the “monthly price adjustments format” based on the average of weekly fuel price adjustment announced by the government to pass on the extra cost to the customers. The effect of the price adjustments will only materialize during the 3rd quarter.


Scicom MSC Q4 FY2017 Results

During the financial year, the Company recognized a tax incentive representing 70% tax exemption on its statutory income from outsourcing services. The Company’s achievement of the conditions and KPIs have been presented to the administrator, however, the assessment by the administrator has not been completed as at 30 June 2017. The Directors have assessed that the Company is able to meet the requirements for the tax incentive after taking into consideration that the Company has substantially met the stipulated conditions and KPIs, and their historical experience where confirmations from the administrator were obtained to recognize the tax incentive when conditions and KPIs were substantially met.

Therefore, the Directors are of the view that there is a reasonable basis for the Company to recognize the tax incentive during the financial year ended 30 June 2017.

Where the final outcome of the assessment of income tax exemption by the administrator is different from the Company’s assessment, this will result in higher income tax expense on the statutory income from outsourcing services recognized during the financial year.


Padini Holdings Q4 FY2017 Results

…the positive growth from the existing stores with 8% same stores sales growth… the opening of fourteen new stores during the current 12-month quarter.

There is an increase of RM22 million on inventories losses, inventory written-off and inventory written-down as compared to last financial year. This is an initiative of the management to embark on a more stringent implementation of the inventory policy with the use of stricter write off/ write down estimates. Excluded the effect of the additional inventories losses, the gross profit margin stood at 40.8%.


N2N Connect Q2 FY2017 Results

The acquisition of AFE, which was completed on 31 March 2017, enhanced our coverage in Malaysia, Singapore, Indonesia, Philippines and the United States. With the addition of Hong Kong, Macau, and Vietnam resulting in N2N being one of the largest Asian base platform provider. The acquisition of AFE will positively contribute to the Group’s performance in the future. We are assessing a few more potential targets for acquisition to establish a Pan Asia presence and the network of inter broking activities powered by our latest platform.

The Philippines business is expanding beyond the provision of the platform to the Philippine Stock Exchange(“PSE”) as leading brokers are now coming directly to N2N to obtain a more advanced version of the trading system to complement the services currently obtained from N2N via PSE. New agreements are in the pipeline and more demonstration to prospects, including the Back Office Settlement system, which had gone live in April 2017.


Choo Bee Metal Industries Q2 FY2017 Results

Of late, flat strip products have begun to pick up in price prior to earlier moderation, mainly due to speculative buying activities in China’s futures market. The pick-up in prices will augur well for tubular products and manufacturers where they are expected to raise their selling prices for finished products in tandem with the rise in iron ore prices. However, global demand ex-China remains soft and as such, sustainability of this price increase remains uncertain.


Tomypak Holdings Q2 FY2017 Results

With the completion of the new plant and the successful commissioning of the first more advance and efficient new printing and lamination machines, the Group is in the midst of working with major existing customers and potential customers to qualify this new plant to service these customers. Upon the successful certification of this new production process, the Group expects the overall performance to improve.

Another three sets of advance and efficient machines are schedule to be delivered in the last quarter of 2017, which will be commissioned and ready for production towards the end of the first quarter of 2018. The Group expects these machines to further improve the overall productivity and efficiency.


Hexza Q4 FY2017 Results

Due to lower sales volume and taking into consideration the Excise Duties (Amendment) Order 2016, whereby the excise duty of potable alcohol will be levied on the finished products and paid by the bottlers, our ethanol division’s revenue, which previously included excise duty for potable alcohol, was 66.1% lower.

The impact of the steep hike in excise duty for potable alcohol is still being felt as manufacturers of locally bottled alcohol products continued to adjust to the new market dynamics. In view of the challenges in the potable alcohol market, our strategy is to intensify our marketing efforts and deepen customer relationship. Our potable alcohol sales may be affected by new regulation introduced by the government but we expect our ethanol division to remain profitable during the financial year ending 30th June 2018.