KUALA LUMPUR (Feb 18): Based on corporate announcements and news flow today, stocks in focus on Wednesday (Feb 19) may include: Wah Seong Corp Bhd, KKB Engineering Bhd, Bina Darulaman Bhd, IOI Corp Bhd, Berjaya Sports Toto Bhd (BToto), Sarawak Plantation Bhd, Matrix Parking Solution Holdings Bhd, Alam Maritim Resources Bhd, Seacera Group Bhd, Eastern & Oriental Bhd (E&O) and Leong Hup International Bhd.

Impairments widened Wah Seong Corp Bhd’s net loss to RM30.59 million in its fourth quarter ended Dec 31, 2019, from RM9.98 million in the previous corresponding period. Quarterly revenue contracted nearly 40% to RM429.25 million, from RM706.37 million a year earlier.

Nevertheless, the oil & gas pipe maker declared a first interim dividend of one sen per share, payable on April 8.

Wah Seong’s 4Q losses dragged its full year net profit down to RM24.14 million, dropping 62.8% compared with RM64.80 million in the preceding year. Annual revenue stood at RM2.51 billion, lower by 15.1% versus RM2.96 billion in FY18.

The group said it is confident of securing some jobs that will have a positive contribution to the group in the current year.

KKB Engineering Bhd's net profit surged 2.66 times to RM20.27 million in the fourth quarter ended Dec 31, 2019 from RM7.61 million a year ago, on improved margin on the back of higher revenue registered by both its engineering and manufacturing sectors. Revenue for the quarter also rose 9.5% to RM156.03 million from RM142.54 million a year ago.

KKB Engineering is recommending a first and final dividend of six sen per share.

The better quarterly performance lifted the group's net profit for the full year up 2.7 times to RM48.31 million, from RM17.64 million in the previous year, while revenue grew 35.5% to RM559.03 million from RM412.48 million.

On prospects, KKB Engineering said demand for steel water pipes is expected to remain firm, buoyed by ongoing and upcoming water-related infrastructure projects planned under the Sarawak Water Supply Grid Programme.

Bina Darulaman Bhd has won a RM39.79 million contract from the Water, Land and Natural Resources Ministry to undertake construction works under the national non-revenue water programme in Perlis.

The contract duration is for 104 weeks until Feb 16, 2022.

The project is expected to contribute positively to the group's earnings for the financial years ending 2020 to 2023.

IOI Corp Bhd’s net profit for the second quarter ended Dec 31, 2019 rose 9.21% to RM213.5 million, from RM195.5 a year earlier, thanks to higher crude palm oil (CPO) prices. Quarterly revenue increased 3.97% to RM1.96 billion, from RM1.88 billion previously.

IOI declared a dividend of four sen, payable on March 13. This compares with its 3.5 sen dividend payout in FY19.

For the first half of the year, IOI’s net profit rose 6.84% to RM362.50 million, from RM339.30 million in the previous corresponding period. Half-year revenue was marginally lower at RM3.73 billion, from RM3.76 billion previously.

Going forward, the group expects palm oil price to be volatile due to the uncertainty on the extent and duration of the coronavirus outbreak, but underpinned by low palm oil inventory and expected higher demand before and during Ramadan in April and May 2020.

Berjaya Sports Toto Bhd (BToto) reported a net profit of RM61.94 million in its second quarter ended Dec 31, 2019, mainly contributed by the strong sales, in particular the 4D Jackpot game, from its number forecast operator (NFO) business Sports Toto Malaysia Sdn Bhd.

BToto declared a second interim dividend distribution of four sen per share for the financial year ending June 30, 2020, payable on April 9.

For the six-month period, BToto registered a cumulative net profit of RM128.89 million on revenue of RM2.84 billion.

The group anticipates its Sports Toto performance to be better with the improved per draw sales growth.

Sarawak Plantation Bhd's net profit surged 7.4 times to RM8.68 million in the fourth quarter ended Dec 31, 2019 from RM1.18 million a year ago, on higher revenue and gains arising from changes in fair value of biological assets of RM1.8 million  compared with a loss of RM4.6 million previously.

Revenue for the quarter rose 22% to RM108.92 million from RM89.28 million a year ago.

The improved quarterly performance lifted the group's net profit for the full year by 87.1% to RM20.92 million from RM11.18 million in the previous year, while revenue rose 11.8% to RM347.53 million from RM310.79 million.

The group expects 2020 CPO price to be higher than 2019 and said it is confident of achieving a promising result in the current year.

Matrix Parking Solution Holdings Bhd has proposed to undertake a bonus issue of 100 million new warrants on the basis of one warrant for every two existing shares held at an entitlement date to be determined later.

Matrix said the bonus issue of warrants is to reward existing shareholders of the company and provide them with an opportunity to increase their equity participation in the company.

Assuming the exercise price of the warrants is 15 sen, which represents a discount of 11.76% to the five-day volume weighted average market price of Matrix shares up to Feb 17 of 17 sen per share, the gross proceeds to be raised upon full exercise of the warrants is approximately RM15 million.

The proceeds will be used as working capital or may be utilised to finance, among others, the group’s day-to-day operating cost.

Alam Maritim Resources Bhd said its unit has been awarded a work order worth RM28 million for the provision of anchor handling tug and supply for Petronas Carigali Sdn Bhd.

The work order awarded to wholly-owned Alam Maritim (M) Sdn Bhd is for a charter duration of up to 630 days from the commencement date of Jan 4.

The contract is expected to contribute positively to the earnings and net tangible assets of Alam Maritim and its group of companies for the financial year ending Dec 31, 2020 and thereafter within the duration of the contract.

Seacera Group Bhd's major subsidiary Duta Skyline Sdn Bhd is being sued by the Inland Revenue Board (IRB) for RM25.62 million in outstanding tax payments.

Duta Skyline was yesterday served with a statement of claim and writ of summons by IRB. Duta Skyline holds assets of more than 70% within the Seacera group.

IRB is also seeking interest at the rate of 5% per year from the date of judgment until the full realisation date, costs and any other relief the court may deem fit.

The company is currently seeking professional legal advice and will make further announcement on any material development on this matter. It does not see any operational and financial impacts from this legal suit.

Eastern & Oriental Bhd (E&O), which aims to launch properties worth RM1.3 billion in gross development value (GDV) this year, swung back to profit in its third financial quarter ended Dec 31, 2019 (3QFY20), thanks to an unrealised foreign exchange (forex) gain of RM23.1 million during the current quarter compared with an unrealised forex loss of RM9.2 million in 3QFY19.

The property developer posted a net profit of RM18.76 million in 3QFY20 compared with a net loss of RM8.76 million a year ago. As a result, it recorded an earnings per share of 1.31 sen for 3QFY20 from a loss per share of 0.67 sen for 3QFY19. Revenue for the quarter, however, fell 53.6% to RM119.15 million from RM256.95 million a year ago due to lower revenue recognised by its property and hospitality segments.

Net profit for the cumulative nine months (9MFY20) was down by 65.9% to RM8.09 million from RM23.7 million in 9MFY19, while revenue declined 38.6% to RM390.57 million in 9MFY20 from RM636.34 million a year ago.

Leong Hup International Bhd reported a 9.5% drop in its fourth quarter net profit to RM29.53 million, from RM32.63 million in the year-ago quarter, dragged by compressed margins at its livestock and poultry segment.

Quarterly revenue, meanwhile, contracted a marginal 0.7% to RM1.54 billion, from RM1.55 billion previously.

Full year net profit stood at RM150.58 million, down 19.1% from RM186.19 million in the previous year, while revenue rose 5.4% to a record high of RM6.05 billion, from RM5.75 billion previously.  

While the group said it is cognisant of a weaker economic environment due to the implications of the Covid-19 outbreak which may exert pressures on its operating margins, the group on balance expects to register a satisfactory performance in the current year.