KUALA LUMPUR (May 9): Here is a brief recap of some corporate announcements that made news on Tuesday (May 9) involving Carlsberg Brewery Malaysia Bhd, Hartalega Holdings Bhd, Supermax Corporation Bhd, AirAsia X Bhd (AAX), Capital A Bhd, Sand Nisko Capital Bhd, Citaglobal Bhd, Velesto Energy Bhd and Excel Force MSC Bhd.

Carlsberg Brewery Malaysia Bhd’s net profit for the first quarter ended March 31, 2023 (1QFY2023) dropped 7.15% to RM85.04 million from RM91.59 million a year ago, due to the early timing and shorter sales period for the Chinese New Year (CNY) celebrations, coupled with higher input costs and marketing expenses.

It declared its first interim dividend of 21 sen per share — versus 22 sen in the same quarter last year — with an ex-date of May 24, to be paid on June 8. Quarterly revenue inched up 0.97% to RM660.2 million from RM653.85 million, contributed by price adjustment effects, which offset the impact of lower volume during the quarter due to the earlier Chinese New Year (CNY) festive season. Besides the CNY factor, its 1Q business was impacted by lower consumer consumption due to increasing concerns of elevated living costs, amid sluggish economic growth forecasts in Malaysia and Singapore, said Carlsberg managing director Stefano Clini in a separate statement. “We also observed a shift in consumer spending from domestic consumption to international travel, as the latter has become more accessible and beer consumption has normalised after the surge of economic activity experienced after the reopening in 2022,” said Clini.

Dragged by a RM347 million one-off impairment loss from the decommissioning of its Bestari Jaya production facility, Hartalega Holdings Bhd sank into the red for the financial year ended March 31, 2023 (FY2023) with a net loss of RM218.04 million, versus a net profit of RM3.23 billion a year ago. It was also weighed down by a 69.5% fall in annual revenue to RM2.41 billion in FY2023, as compared to RM7.89 billion in FY2022, due to lower average selling prices, sales volume amid the continued oversupply situation and supply chain inventory adjustments. Barring the impairment loss, it would achieve a full-year net profit of RM126 million for FY2023. For 4QFY2023, Hartalega’s net loss widened to RM302.76 million, from RM198.15 million a year ago, due to the aforementioned one-off impairment loss, lower production utilisation and higher operating costs. Quarterly revenue tumbled 46.8% to RM515.74 million, from RM968.69 million a year prior. Against its gross profit of RM15.22 million, it recorded a gross margin of barely 2.95%.

Cash-rich Supermax Corporation Bhd bought back a total of 66.9 million of its own shares from April 19 to May 9, amounting to RM58.45 million. These buybacks were done within the price range of 82 sen to 91 sen. In comparison, it traded as high as RM9.394 per share in August 2020 at the height of the Covid-19 pandemic, before trending downwards in the following years, as the subsiding global pandemic led to a softening in glove demand.

AirAsia X Bhd (AAX), the affiliate of Capital A Bhd, has been granted a further three-month extension of time until July 28 from Bursa Securities to submit its regularisation plan. It was previously granted an extension of time until April 28 this year, to submit the regularisation plan to the regulatory authorities. AAX slipped into PN17 status on Oct 27, 2021, while  Capital A did so on Jan 14, 2022, after accumulating pandemic-led losses, which resulted in negative shareholders equity for both companies.

Sand Nisko Capital Bhd’s unit has expressed its interest to participate in a RM1.75 billion mixed-used development project on three adjoining plots of leasehold lands, spanning 519.5 acres in Alor Gajah, Melaka. Its unit Len Cheong Industries Sdn Bhd entered into a Heads of Agreement with Evergreen More Sdn Bhd to set forth the intentions and commitments to establish a collaboration between both parties for the development, dubbed Meswara City.

Citaglobal Bhd’s unit has secured a RM261 million works contract for the Klang Valley Electrified Double Track Phase 2 (KVDT2). The contract, spanning three years starting from June 1, 2023, was awarded by KVDT2’s main contractor Dhaya Maju Infrastructure (Asia) Sdn Bhd and is expected to be completed after 36 months from commencement. The KVDT2 is a rail rehabilitation project with an estimated value of RM4.475 billion that is being undertaken by Dhaya Maju LTAT Sdn Bhd — Dhaya Maju’s 80:20 joint venture with armed forces fund Lembaga Tabung Angkatan Tentera (LTAT). The KVDT2 project involves the replacement of existing 25-year-old railway tracks, an electrification system and an upgrade and maintenance of the facilities involving two railway tracks from Salak South to Seremban, and from Simpang Port Klang to Port Klang.

Velesto Energy Bhd’s unit has secured three jack-up drilling rigs contracts for Petronas Carigali Sdn Bhd (PCSB), valued at US$128 million (RM569.48 million). The three jack-up rigs — Naga 3, Naga 4 and Naga 6 — have a drilling depth capability of 30,000 feet and a rated operating water depth of 350 feet to 400 feet. Velesto’s subsidiary Velesto Malaysian Ventures Sdn Bhd will start providing the rigs in the third quarter (3Q) of 2023.

Excel Force MSC Bhd has announced the appointment of Farhash Wafa Salvador as the group’s new executive chairman, effective May 9, following the resignation of Tan Sri Dr Muhammad Rais Abdul Karim as the group’s independent and non-executive chairman. Farhash is the former political secretary to Prime Minister Datuk Seri Anwar Ibrahim. Farhash, 41, was made the non-independent non-executive chairman of 7-Eleven Malaysia Holdings Bhd since January this year. This followed his appointment as group executive chairman of Apex Equity Holdings Bhd in December last year.