MAHB Lands On Lower Pre-tax Profit Of RM41.65 Million For 2015

SEPANG, Feb 17 (Bernama) -- Airport operator, Malaysia Airports Holdings Bhd (MAHB)'s pre-tax profit slipped to RM41.65 million for the financial year ended Dec 31, 2015, down 94.22 per cent, from RM749.32 million registered in 2014.

Revenue, however, jumped to RM3.87 billion from RM3.34 billion, previously.

For the fourth quarter, MAHB saw a pre-tax loss of RM58.09 million, down 109.72 per cent, compared with a pre-tax profit of RM597.468 million recorded previously while revenue stood at RM1.03 billion against RM711.33 million registered in the same quarter of 2014.

Explaining the results, MAHB Managing Director Datuk Badlisham Ghazali said, the loss was primarily due to the amortisation of fair value for the concession rights owing to the fair valuation exercise on the acquisition of two airports, namely the Istanbul Sabiha Gokcen Uluslararasi Havalimani Yatirim Yapim ve Isletme A.S. (ISG) and LGM Havalimani Isletmeleri Ticarat ve Turizm A.S. (LGM) in Turkey.

In the previous corresponding year, the group had also recognised a gain on bargain purchase of RM314.9 million arising from the acquisition of ISG and impairment of goodwill arising from the acquisition of LGM of RM231.3 million, he told a press conference here Wednesday.

Besides, the unfavourable variance in pre-tax profit was also due to higher total costs by 16.1 per cent or RM426.0 million from RM2.641 billion in 2014 to RM3.06 billion in 2015 primarily arising from the Kuala Lumpur International Airport2 which started operation in May 2014.

Excluding the effect of ISG and LGM and the acquisition adjustments, group pre-tax profit for 2015 was 39.2 per cent or RM60.2 million higher than the previous corresponding year mainly due to higher revenue, he said.

On outlook, he said the return of British Airways, All Nippon Airways and Air China in 2015 and the extensive code-share partnership between Malaysia Airlines and Emirates was a positive indication of continuing potential demand for air travel.

Furthermore, the move by the government to accord visa free status to travellers from China and the implementation of eVisas would provide the added dynamism required by the industry in 2016.

He said MAHB was also banking at stimulating economic activity through logistics, aerospace and leisure segments for the group's aeropolis development, which would also serve as an engine for tourism growth.

For the group's operations in Turkey, growth remained robust as indicated by the recognition of being the fastest growing airport in Europe in 2015.

Passenger traffic at ISG was expected to register double-digit growth in 2016, he said.

Hence, Badlisham was optimistic MAHB's earnings before interest, tax, depreciation and amortisation (EBITDA) Key Performance Indicator for the financial year ending 2016 would be RM902.1 million while Turkey's operations would come in at RM813.9 million.

The increase in EBITDA would be in tandem with the expected growth in passenger movement, both in Malaysia and Turkey, he added.

"Despite expected prudent spending behaviour due to slow economy situation globally, we are confident that our business in Malaysia would continue to grow in tandem with the expected increase in passenger movement.

"Combined with aggressive controls over spending (cost optimisation), MAHB is positive that 2016 EBITDA (excluding Turkey) of RM902 million is achievable," he added.

MAHB shares closed four sen higher at RM6.18 on Bursa Malaysia today.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216532

KL Kepong PBT Soars To RM911 Million In Q1

KUALA LUMPUR, Feb 18 (Bernama) - Plantation company Kuala Lumpur Kepong Bhd's (KLK) pre-tax profit for the first quarter ended Dec 31, 2015 soared to RM911 million from RM294.3 million in the preceding year corresponding quarter.

Revenue jumped to RM4.33 billion from RM3.11 billion previously.

In its filing to Bursa Malaysia, the group said the outlook for the plantation sector remained challenging for the current financial year.

Without taking into account the surplus on sales of plantation land in the current quarter, the group anticipates a satisfactory profit for the financial year 2016.

Meanwhile, KLK Group Plantation Director Roy Lim Kiam Chye said for the financial year 2016, the company's prospect for profits from palm oil and rubber would not be much different from that of 2015 due to the economic slowdown.

He said the low expectation was caused by plunging oil prices which would affect demands for biodiesel as well as drought which hit Indonesia last year that would affect oil palm production.

"Besides that, all our oilseed competitors such as sunflower and soybean are having very good harvests this year and these will put a cap to our price," he told reporters after the group's annual general meeting in Ipoh today.

KLK has 250,000 hectares of plantations in Malaysia and Indonesia, and about 20,000 hectares in Liberia.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216534

ASEAN-India Trade Hits US$76.53 Billion

NEW DELHI, Feb 17 (Bernama) -- Trade between India and ASEAN countries crossed US$76.53 billion in 2014-15, with the host country at the eighth edition of the Delhi Dialogue looking for ways to further enhancing the trade.

Ministry of Exeternal Affairs Secretary (East) Anil Wadhwa in his keynote address at the business session of the dialogue said India is currently undergoing economic and social transformation on a scale and at a speed unmatched in the country's history.

He said among ASEAN countries, Indonesia is the largest trading partner with bilateral trade at US$19.03 billion in the period, followed by Malaysia, Singapore and Thailand.

Despite the global economic uncertainties, the steps India took to improve the business climate had resulted in FDI inflows going up by 40 per cent last year, he said.

"We have become the world's seventh most valued nation brand with a 32 per cent sprint in brand value; we have improved our UNCTAD ranking of investment attractiveness from 15th to 9th place; and Moody's have upgraded our rating to positive," Anil said.

He pointed out that with the formal establishment of the ASEAN Economic Community (AEC) in December 2015, ASEAN is forging ahead as a community by deepening its economic integration among member countries.

"Collectively the third largest economy in Asia and the seventh in the world, the AEC offers many prospects and opportunities, including a middle income market of 622 million people.

"It will further enable our businesses to jointly explore opportunities in the wider Southeast Asian region," Anil told some 200 diplomats, business leaders and journalists from India and Asean countries.

He said a significant achievement over the last few years has been the completion of the ASEAN-India Free Trade Area with the entry into force of the ASEAN-India Agreements on Trade in Services and Investment on July 1, 2015.

So far, India, Brunei Darussalam, Malaysia, Myanmar, Singapore, Vietnam and Thailand have ratified the Agreements.

Meanwhile, ASEAN-India Business Council Co-Chairman Datuk Ramesh Kodammal said at the panel discussion that with Indian Prime Minister Narendra Modi's efforts to lure more FDI into country, there is great potential of further growth for small and medium-sized enterprises (SMEs).

He said the nearly 20,000 SMEs in the ASEAN region lack knowledge and information on the latest developments in India.

"India needs to facilitate these SMEs in gettting the right local partner to expand their businesses in not only major cities here but also the second-tier cities," he said.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216536

BAT's Pre-tax Profit Rises To RM1.23 Billion

KUALA LUMPUR, Feb 17 (Bernama) -- British American Tobacco (M) Bhd's pre-tax profit for financial year ended Dec 31, 2015 rose to RM1.23 billion from RM1.21 billion in the same period of 2014.

Revenue, however, fell to RM4.58 billion from RM4.79 billion previously.

For the fourth quarter ended Dec 31, 2015, the pre-tax profit rose to RM272.55 million from RM265.94 million in the same quarter last year.

Revenue declined to RM1.05 billion from RM1.2 billion previously.

In a statement Wednesday, Managing Director, Stefano Clini, said the group registered a domestic volume contraction of 13.5 per cent in the face of falling legal consumption in 2015 versus 2014.

"This is mainly a consequence of the overall softer demand among consumers due to the weaker market sentiments after the implementation of the goods and services tax and the impact of the unprecedented November 2015 excise increase," he said.

The company closed the year with 62.1 per cent share of the market, up 0.9 per cent versus the same period in 2014, he said.

He said illegal cigarette trade continued to jeopardise revenue collection given its impact on legal volumes.

"Nonetheless, we remain encouraged by the concerted efforts undertaken by various law enforcement agencies, in particular the Royal Malaysian Customs for its unwavering commitment towards addressing the illegal cigarette trade," he said.

Clini said despite the challenging economic climate, the group managed to record a marginal 0.5 per cent increase in profit from operations," he said.

The outlook for 2016 would be impacted by the excise increase in November last year and the recovery of the legal market will depend on enforcement efforts to reduce the high illegal cigarette incidence, he said.

The board has declared a fourth interim dividend of 78 sen per share.

BAT rose 18 sen to close at RM56.08 on Bursa Malaysia yesterday.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216538

Superlon Holdings to Construct New Warehouse Building

KUALA LUMPUR, Feb 17 (Bernama) -- Superlon Holdings Bhd via its wholly-owned subsidiary, Superlon Worldwide Sdn Bhd, will construct a new warehouse building in Klang costing RM10.3 million.

The construction of the building, awarded to Total Modern Engineering Sdn Bhd, is expected to be completed in the fourth quarter of this year, Superlon said in filing to Bursa Malaysia Wednesday.

"Located adjacent to its existing factory, the new warehouse would enable Superlon to expand its storage facilities and improve the layout of its manufacturing facilities," it said.

This is expected to reduce the response and delivery time to its customers and to contribute positively to the group's future earnings.

Superlon is a manufacturer of thermal insulation materials used mainly in the heating, ventilation, air conditioning and refrigeration system of residential, commercial and industrial buildings.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216548

Thailand Posts Lower Car and Truck Sales in January

BANGKOK, Feb 17 (Bernama) -- Weakening global economic growth coupled with internal factors were the main reasons behind Thailand's lower sales of cars and trucks last month, says the Automotive Industry Club of the Federation of Thai Industries (FTI).

Deputy Chairman Surapong Paisitpatanapong said sales of cars and trucks in January dropped 13.4 per cent year-on-year (y-o-y) to 51,715 units.

"The lower sales was mainly due to the global market and domestic economy that have yet to recover, while other key domestic factors, such as the low prices of agriculture products and a slowdown in private investment, also played a part," he said Wednesday.

Customers' decision to buy new cars at the end of last year just before the enforcement of a new and higher tax for automobiles in January this year also played a part in the contracting sales figures, he said.

Nevertheless, Thailand's exports of cars and trucks in January registered a slight increase of 1.38 per cent y-o-y to 93,714 units valued at 50.582 billion Baht (RM1 = 8.44 Baht).

Inclusive of engines and spare parts, he said, the value of exports in January was 69.149 billion Baht.

-- Bernama

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216558

Sapangar Bay To Increase Handling Capacity Under Expansion Programme

KUALA LUMPUR, Feb 16 (Bernama) -- Sapangar Bay Container Port (SBCP) will more than double its handling capacity under the initial phase of its expansion programme.

Suria Capital Holdings Bhd's unit, Sabah Ports Sdn Bhd, was chosen as the implementing agency for the programme under the 11th Malaysia Plan (MP11).

In a filing to Bursa Malaysia today, Suria Capital said the construction work for the first stage would start early next year and be completed by 2019.

"The operation area will be expanded to boost container handling capacity to 1.25 million TEUs (20 foot equivalent units) from the current 500,000 TEUs.

"This involves expanding its berth length from the current 500 metres to 1.2km and stacking area from 15 hectares to 60 hectares," it said.

Suria Capital said currently, SBCP handled an average of 300,00 TEUs a year, which was about 70 per cent of the total container throughput of Sabah.

"The growth has been on the uptrend at about five to six per cent annually since the privatisation exercise," it said.

Suria Capital said for the SBCP expansion programme, the government has allocated RM800 million and funding under the first rolling plan would be staggered over two years (2016-2017).

"Under the arrangement, RM7 million is to be used within the first year of implementation and RM365 million in 2017," it added.

-- BERNAMA

Source: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1216177