S.Korea November exports plunge as China-U.S. deal still in dark

SEOUL: South Korean exports in November fell for the 12th month in a row and far more than expected, denting hopes for the global manufacturing sector stabilising as a much-awaited China-U.S. trade deal is still in darkness.

Exports declined 14.3% in November from a year earlier, trade ministry data showed on Sunday, far below a median 10.2% fall tipped in a Reuters poll and missing even the worst forecast in the survey of an 11.1% loss.

It was also the second-worst drop in overseas sales in nearly four years as global semiconductor prices failed to turn around while China, the country's biggest export market, continued to cut down purchases from its smaller neighbour.

The surprisingly weak November data from a manufacturing powerhouse, which reports monthly trade data ahead of major exporting nations each month, underscores the global economy still far from a turning point.

"The optimism for the first-phase trade deal between the United States and China will take time before actually boosting exports, and today's poor data means the turnaround in exports is taking longer than expected," said Chun Kyu-yeon, economist at Hana Financial Investment.

Shipments to China fell 12.2% in November from a year earlier, while overseas sales of semiconductors, South Korea's top export item, tumbled by 30.8% in value as prices plunged this year from a super-rally last year.

Imports fell 13.0% on-year in November, also missing an 11.9% contraction tipped in the survey. That brought the November trade balance to a $3.37 billion surplus, versus a $5.34 billion surplus a month earlier.

Sunday's data left shipments for the first 11 months of this year 10.7% below a year earlier, putting the country on track for its worst annual exports performance since a 13.9% fall in 2009 during the height of a global financial crisis.

South Korea's economy, the fourth-largest in Asia and heavily dependent on exports, has been hit especially hard by cooling global trade and a prolonged tariff war between China and the United States.

On Friday, the central bank trimmed its 2019 economic growth forecast for the fourth time this year to the lowest in a decade, and also lowered next year's forecast.

The downgrades came even after the Bank of Korea cut rates twice this year, the most recent cut coming in October. Many analysts expect the central bank to ease policy further next year to support the stuttering economy. - Reuters

source https://www.thesundaily.my/business/s-korea-november-exports-plunge-as-china-u-s-deal-still-in-dark-XH1687077

China wants US tariffs rolled back in phase one trade deal: Global Times

BEIJING: Beijing is insisting U.S. tariffs must be rolled back as part of any phase one trade deal with Washington, China's Global Times newspaper said on Sunday citing unnamed sources, amid continued uncertainty on whether the two sides can strike a deal.

"A US pledge to scrap tariffs scheduled for December 15 cannot replace the rollbacks of tariffs," the newspaper said in a tweet, referring to an additional round of tariffs on Chinese imports to be implemented in the absence of a trade deal.

The Global Times is published by the People's Daily, the official newspaper of China's ruling Communist Party.

On Tuesday, U.S. President Donald Trump said Washington was in the "final throes" of a deal aimed at defusing a 16-month trade war with China, a few days after Chinese President Xi Jinping had expressed his desire for a trade agreement. Top trade negotiators for both countries also spoke again and agreed to continue working on the remaining issues.

Trade experts and people close to the White House told Reuters last month, however, that signing of a phase one agreement may not take place until the new year as China pressed for more extensive rollbacks of tariffs. An agreement was initially expected to be completed by the end of November.

U.S. Senate Finance Committee Chairman Chuck Grassley told reporters on Tuesday that Beijing invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for in-person talks in Beijing.

Grassley said Lighthizer and Mnuchin were willing to go if they saw "a real chance of getting a final agreement".

A source familiar with the trade talks also told Reuters that U.S. officials could travel to China after Thursday's Thanksgiving holiday in the United States. - Reuters

source https://www.thesundaily.my/business/china-wants-us-tariffs-rolled-back-in-phase-one-trade-deal-global-times-CH1687037

InterPac Capital Preservation & Growth Fund launched

SHAH ALAM: Inter-Pacific Asset Management Sdn Bhd, a subsidiary of Berjaya Corp Bhd, today launched the InterPac Capital Preservation and Growth (ICPG) Fund, a wholesale mixed asset fund which seeks to provide capital preservation, consistent income and growth.

The fund seeks to provide an annual return of 4% and a targeted return of at least 30% on a cumulative basis over three years.

It is suitable for sophisticated investors who have a medium to long term investment horizon and for those who seek capital preservation, consistent income and growth in their investment.

The minimum initial investment is RM50,000.

source https://www.thesundaily.my/business/interpac-capital-preservation-growth-fund-launched-EI1684556

Inter-Pacific Asset Management appoints Nazri as new head

SHAH ALAM: Inter-Pacific Asset Management Sdn Bhd, a subsidiary of Berjaya Corp Bhd, has appointed renowned financial economist Datuk Dr Nazri Khan (pix) as its new head.

Nazri is a prominent figure and a notable economist among investors.

Being an Economics graduate from Manchester University, UK and a PhD holder from Multimedia University, Nazri was the former senior vice president (investment) of fund management company Phillip Capital Management and former chief investment officer of private equity specialist Widuri Capital Sdn Bhd. Prior to that, he was the head of retail research in Affin Hwang Investment Bank.

He is currently the chairman of Malaysian Association of Technical Analysts.

source https://www.thesundaily.my/business/inter-pacific-asset-management-appoints-nazri-as-new-head-MI1684493

IHH back in black with RM236.34m net profit in Q319

PETALING JAYA: IHH Healthcare Bhd posted a net profit of RM236.34 million in its third quarter ended Sept 30, 2019 (Q319) against a net loss of RM104.07 million reported in the corresponding period of the previous year due to growth from existing operations and the continuous ramp up of hospitals, contribution from increased capacity, as well as the absence of exceptional items.

For the period, the group reported a revenue of RM3.79 billion, a 33.4% increase from RM2.84 billion reported previously.

Excluding exceptional items, its profit after tax and minority interest (patmi) for Q319 decreased 35% to RM202.3 million attributed to higher net interest expense, foreign exchange losses and fair value losses on forward exchange contracts, as compared to gains recognised in Q318.

For the cumulative nine-month period, the group reported a net profit of RM510.85 million, a four-fold increase from RM118.27 million reported in the corresponding quarter of the previous year.

Revenue for the period stood at RM11.08 billion, a 32.6% increase from RM8.36 billion reported previously.

IHH CEO (designate) and executive director Dr Kelvin Loh said its focus on working towards its vision of becoming the world’s most trusted healthcare network underpinned another strong set of financial results for Q319, as the group prioritised operational synergies and integration.

“The proposed acquisition of Prince Court Medical Centre is set to enhance our leadership position in Malaysia. Our proactive stance to recalibrate our non-Lira loans in Acibadem has also reduced our exposure to currency volatility in Turkey,” he said in a statement.

“We are also excited with our progress in Greater China, where we just opened Gleneagles Chengdu. We continue to ramp up operations at Gleneagles Hong Kong where there is a demand to serve more patients.”

On its future prospect, IHH will further consolidate its multi-country portfolio strategy to diversify its earnings base in cashflow-generative markets such as Singapore and Malaysia, capture medium-term growth momentum from Turkey and long-term growth opportunities from India and Greater China.

The group will focus on ramping up its existing operations while opening new operations in phases to achieve optimal operating leverage.

It expects to mitigate the potential higher costs of operations including from impending price controls through improvements in case mix and tight cost control.

source https://www.thesundaily.my/business/ihh-back-in-black-with-rm23634m-net-profit-in-q319-CL1683343

Boustead sinks to the red in Q3

PETALING JAYA: Boustead Holdings Bhd saw a net loss of RM155 million in the third quarter ended Sept 30, 2019 compared with a net profit of RM7.30 million a year ago impacted mainly by impairment in heavy industries and property divisions.

However, its revenue rose 5% to RM2.73 billion from RM2.60 billion previously.

For the nine months period, the group’s net loss widened to RM153.10 million from RM14.20 million, mainly impacted by impairment in heavy industries and property divisions.

Its revenue, however, jumped 6% to RM7.79 billion from RM7.33 billion.

Boustead managing director Datuk Seri Amrin Awaluddin said as it strives to achieve a turnaround for the group, it is cognisant of the challenges it face in the current operating environment.

“We remain focused on enhancing efficiencies and extracting further value within the respective operating units, with a view to deliver sustainable earnings over the long-term,” he said in a statement.

source https://www.thesundaily.my/business/boustead-sinks-to-the-red-in-q3-JL1683139

Malaysia records RM149b of approved investments in Jan-Sept 2019

KUALA LUMPUR: Malaysia has become more selective in its investment agenda, attracting quality investments in targeted ecosystems that are projected to have significant knock-on effects throughout the domestic economy, said International Trade and Industry Minister Datuk Darell Leiking (pix).

In a statement today, he said Malaysia recorded RM149 billion worth of approved investments in the services, manufacturing and primary sectors in the first nine months of this year.

"This was 4.4 per cent higher than the RM142.6 billion approved in the same period last year.

"These investments involved 4,025 projects and will create an additional of 93,841 job opportunities,” said Darell.

The majority of the investments came from domestic sources, which contributed RM82.7 billion or 55.5 per cent of the total investments.

Foreign direct investments (FDI) represented 44.5 per cent or RM66.3 billion.

"Total approved FDI in these three main sectors increased by 6.5 per cent to RM66.3 billion in January-September 2019 from RM62.2 billion in the same period last year," he said.

In terms of sectors, the services sector attracted RM85 billion involving 3,299 approved projects compared with RM74.9 billion comprising 2,931 projects recorded in the corresponding period last year.

These projects are poised to generate over 38,800 employment opportunities.

Out of the total, 72 per cent or RM61.2 billion were from domestic sources and the balance of 28 per cent or RM23.8 billion were foreign investments.

The manufacturing sector approved 671 projects worth RM57.7 billion in the first nine months of 2019 compared with 467 projects with investments of RM57.5 billion in January-September 2018.

Domestic investments amounted to RM18.5 billion or 32.1 per cent, an increase of 81.7 per cent from RM10.2 billion in the same period last year.

Meanwhile, the primary sector contributed RM6.3 billion or 4.2 per cent of the total approved investments in January-September 2019.

The mining subsector continued to lead with approved investments of RM5.9 billion, followed by plantation and commodities with RM275.2 million, and agriculture with RM135.1 million.

Foreign investments dominated the approved investments for the sector totalling RM3.3 billion while domestic sources contributed RM3 billion.

"Despite the ongoing trade tensions pointing to slower growth, we will stick to the course and continue attracting strategic partners to invest in Malaysia.

“This will generate more spillover impact on the economy through the growth of the local supply chain ecosystems and improvement of the Malaysian workforce,” said Darell.

As of September 2019, he said the Malaysian Investment Development Authority (MIDA) was actively negotiating 682 projects with proposed investments of RM37.6 billion.

These include 242 projects within the manufacturing sector (RM26.6 billion) and 440 projects in the services sector (RM11.0 billion). - BERNAMA

source https://www.thesundaily.my/business/malaysia-records-rm149b-of-approved-investments-in-jan-sept-2019-AL1683013

Time dotCom posts higher Q3 net profit of RM83m

KUALA LUMPUR: TIME dotCom Bhd's net profit rose to RM82.99 million for the third quarter (Q3) ended Sept 30, 2019, up from RM79.98 million in the same period last year.

The telecommunication services provider attributed the improvement to a higher consolidated revenue of RM278.16 million compared to RM250.0 million a year earlier, along with better interest income, a larger contribution from associates and a net write-back of construction deposit.

On the group revenue growth, TIME dotCom said it was mainly due to higher revenues generated from the data and voice businesses, which grew by 14.9 per cent (or RM29.6 million) and 2.6 per cent (RM500,000) year-on-year (y-o-y), respectively.

"All core customer groups also registered solid y-o-y revenue growth with the largest growth contributions coming from retail and wholesale customers," it said in a filing with Bursa Malaysia today.

TIME dotCom adopted and applied the new MFRS 16 with effect from Jan 1, 2019. Analysis and comparisons to the previous year's corresponding period were, however, done excluding the impact of MFRS 16 for better comparability purposes, said the company.

"This means that lease contracts that are still on-going as at Jan 1, 2019, will be accounted for as if they had been recognised in accordance with MFRS 16 at the commencement of contracts, but as the group has adopted the cumulative effect retrospective approach, their corresponding comparative figures will not be restated," it added.

For the nine-month period ended Sept 30, 2019, TIME dotCom's net profit advanced to RM238.63 million from RM207.86 million in the same period last year while revenue jumped to RM818.53 million versus RM720.58 million previously.

Moving forward, the company expected the competitive and challenging landscape of the Malaysian telecommunications industry would persist for the remainder of 2019 with liberalisation and improvement efforts being made through regulatory re-balancing.

In a separate statement, commander-in-chief Afzal Abdul Rahim said the company would continue to monitor these developments closely in order to form long-term strategies that were beneficial to both the group and the development of Malaysia into a digital nation.

"The group will continue to work with its partners in Thailand, Vietnam and Cambodia to tap on increasing demand for cross-border connectivity in the region, and assess opportunities to develop its regional data centre business," he added. - BERNAMA

source https://www.thesundaily.my/business/time-dotcom-posts-higher-q3-net-profit-of-rm83m-NK1682924

Bintulu Port Q3 net profit rises to RM24.69m

KUALA LUMPUR: Bintulu Port Holdings Bhd’s net profit for the third quarter ended Sept 30, 2019 (Q3) rose to RM24.69 million from RM18.54 million in the same quarter last year.

Revenue increased to RM173.96 million from RM161.97 million previously.

“The revenue from port’s services at Bintulu Port of RM131.13 million in Q32019 is RM4.81 million higher compared to RM126.32 million achieved in Q3 2018, mainly contributed by the handling of liquefied natural gas (LNG) cargoes and vessel calls,” it said in a filing to Bursa Malaysia today.

Meanwhile, the revenue generated from the operation at Samalaju Industrial Port during the quarter under review amounted toRM29.71 million against RM23.00 million in the corresponding quarter last year.

“The revenue from bulking facilities improved to RM13.12 million from RM12.65 million in Q3 2018,” it said.

On prospects, Bintulu Port said the handling of LNG cargoes and vessel calls remained the main revenue contributor in 2019.

“Other cargoes that are expected to contribute positively towards the operating revenue include palm oil, containerised cargoes and cargoes handled at Samalaju,” it added. - BERNAMA

source https://www.thesundaily.my/business/bintulu-port-q3-net-profit-rises-to-rm2469m-EK1682699

Scanda Sky not a licenced Malaysian airline

KUALA LUMPUR: Scanda Sky PLT is not an airline licensed under the Malaysian Aviation Commission Act 2015 [Act 771], according to the Malaysian Aviation Commission (Mavcom).

Scanda Sky had launched its inaugural flight two days ago from Ipoh to Guangzhou, China.

Mavcom pointed out that Scanda Sky advertises and promotes commercial scheduled flights in its website, thus suggesting it is an airline.

It has issued a warning letter to Scanda Sky instructing it to cease marketing its services as well as advertising itself as a commercial airline.

“Scanda Sky is neither a holder of an Air Service License (ASL) nor Air Service Permit (ASP) issued either by the commission under Act 771 or issued under the Civil Aviation Act 1969 [Act 3],“ Mavcom said in a statement.

An ASL or ASP is required for the carriage of passengers, mail or cargo by air, for hire or reward whether it is on a scheduled or non-scheduled journey between two or more places, of which at least one location is in Malaysia.

“As such, Scanda Sky may have misrepresented itself to the public via news reports and its website that it is a Malaysian carrier permitted to operate such services,” Mavcom added.

source https://www.thesundaily.my/business/scanda-sky-not-a-licenced-malaysian-airline-AK1682640

MARC appoints Jamaludin Nasir as CEO

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has appointed Datuk Jamaludin Nasir as the organisation’s new CEO effective Dec 1, 2019.

Jamaludin has over 27 years of experience in origination, credit and management in the commercial, corporate and investment banking sectors. He has assumed various leadership roles over the course of his career, including as deputy CEO of Asian Finance Bank and as group chief credit officer of Maybank Investment Bank, where he also served as a member of its executive committee and credit and underwriting review committee.

He was also the general manager of Dresdner Bank AG, director/chief operating officer of Dresdner Kleinwort Benson and head of corporate banking and capital markets of Kwong Yik Bank Bhd (now RHB Bank Bhd).

Jamaludin holds an MBA from Texas A&M International University, USA and a Bachelor of Science degree in Finance and Business Economics as well as a Bachelor of Economics degree from Southern Illinois University, USA.

source https://www.thesundaily.my/business/marc-appoints-jamaludin-nasir-as-ceo-EK1682503

BIMB net profit rises to RM208.4m in Q3

KUALA LUMPUR: BIMB Holdings Bhd (BHB) has posted a rise in net profit to RM208.4 million in the third quarter ended Sept 30, 2019 (Q3 2019) from RM198.6 million last year.

Revenue increased to RM1.19 billion from RM1.09 billion previously, the group said in a filing withBursa Malaysia today.

During the quarter, Bank Islam Malaysia Bhd's (Bank Islam) profit before zakat and tax (PBZT) dropped to RM208.8 million from RM225 million in the corresponding quarter in 2018 onhigher finance cost and net allowance for impairment on financing and advances, net of recoveries by RM8.5 million and RM8 million, respectively

Meanwhile, Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) recorded a PBZT of RM121.8 million, an increase of 38.7 per cent from RM87.8 million in Q3 2018, attributable to the increase in net wakalah fee income.

Takaful Malaysia generated operating revenue of RM753.5 million compared with RM649 million in Q3 2018 due to higher sales generated by Family Takaful business.

Family Takaful business recorded gross earned contributions of RM543.7 million against RM436.7 million in Q3 2018 on higher sales from the credit-related products.

In contrast, General Takaful business generated gross earned contributions of RM171.9 million, down 2.9 per cent from RM177.1 million in Q3 2018, mainly attributable to fire and motor classes.

For the first nine-month period (9M 2019), BIMB Holdings’ net profit rose to RM606.1 million from RM520.7 million last year, while revenue was higher at RM3.53 billion compared with RM3.08 billion previously.

In a statement, BIMB Holdings said both the banking and takaful subsidiaries reported strong performance.

Bank Islam's PBZT for 9M 2019 was up 3.3 per cent to RM646.2 million compared with the same corresponding period in 2018 due to higher total income as a result of the increase in net financing of RM4 billion or 8.9 per cent year-on-year (y-o-y) and an increase in investment in financial instruments of RM1.6 billion y-o-y.

"On Nov 5, 2019, the Monetary Policy Committee of Bank Negara Malaysia decided to maintain the overnight policy rate (OPR) at 3.00 per cent.

"Although the OPR was unchanged, deposit rates are expected to rise as competition for deposits is expected to persist as banks brace for upcoming implementation of net stable funding ratio requirement. This would continue to compress the net income margin," BIMB Holdings said.

Nevertheless, profitability indicators are likely to remain intact, despite the challenging economic environment as the bank continues to expand while containing costs and would be pursuing digitalisation to boost non-fund-based income in the longer term.

Meanwhile, Takaful Malaysia recorded a PBZT of RM332.2 million in 9M 2019, an increase of 41.8 per cent compared with RM234.2 million in the same period of 2018 on higher net wakalah fee income arising from the growth in the Family Takaful business and higher net investment income.

Takaful Malaysia’s operating revenue increased by 21 per cent to RM2.34 billion from RM1.93 billion recorded in the same period in 2018, mainly due to higher sales generated by the Family Takaful business.

"Despite business sentiments remaining cautious in 2019, the takaful industry is expected to outperform the conventional insurers in view of the strong demand for takaful products.

"Takaful Malaysia is poised to further expand its market share in 2019," BIMB Holdings said. - BERNAMA

source https://www.thesundaily.my/business/bimb-net-profit-rises-to-rm2084m-in-q3-IK1682390

Malaysia Airlines, Turkish Airlines sign codeshare agreement

PETALING JAYA: Malaysia Airlines and Turkish Airlines have entered into a codeshare agreement that enables both carriers to tap into new markets and offer passengers more travel options.

With the partnership, Turkish Airlines will be offering new destinations in Malaysia and Australia as marketing carrier on Malaysia Airlines operated flights, while Malaysia Airlines will be able to reach Turkey’ domestic destinations.

According to a statement, the Turkish carrier will place its marketing code and flight number on Malaysia Airlines’ Brisbane (BNE), Adelaide (ADL), Melbourne (MEL), Perth (PER), Sydney (SYD), Auckland (AKL) and 12 Malaysia’ domestic flights from Kuala Lumpur.

On the other hand, Malaysia Airlines will place its marketing code and flight number on trunk route (Kuala Lumpur-Istanbul) and Ankara (ESB), Antalya (AYT), İzmir (ADB) routes operated by Turkish Airlines.

Malaysia Airlines CEO Captain Izham Ismail commented that the carrier is glad that the codeshare agreement will further bolster the options it provides to its customers.

“This codeshare will also allow for our passengers to travel to the major cities in Turkey, providing them with even more access for their travels,” he said in a press statement.

“In addition, this opens up the opportunity for more tourists to explore Malaysia, as one of the premier holiday destinations in the Asia Pacific region, and we look forward to extending our Malaysian Hospitality further with all who travel with us.”

Meanwhile, Turkish Airlines chief investment and technology officer Ahmet Bolat that the carrier is committed to provide its passengers with better connection options and taking the passenger experience to a much more comfortable dimension.

source https://www.thesundaily.my/business/malaysia-airlines-turkish-airlines-sign-codeshare-agreement-AK1682345

Sime Darby Plantation posts RM32m net profit in third quarter

PETALING JAYA: Sime Darby Plantation Bhd posted a net profit of RM32 million for the third quarter ended Sept 30, 2019 in comparison with a net profit of RM126 million in the same quarter last year due to weaker average crude palm oil (CPO) and palm kernel (PK) prices realised which was further exacerbated by lower fresh fruit bunch production in the quarter.

Revenue for the quarter stood at RM2.82 billion. There is no comparative for the quarter and nine-months ended Sept 30, 2019 due to the change in the financial year end from June 30 to Dec 31.

Group managing director Mohamad Helmy Othman Basha (pix) said the group’s performance had been adversely impacted by volatile commodity prices and unpredictable weather.

“The results were also largely affected by the impairment charges for our assets in Liberia as we prepare to exit our business there. Our operations in Liberia continue to face challenges and uncertainties. It continues to report losses to-date since its commencement.

“Despite these difficulties, I believe the group will be more resilient as we put performance improvement measures in place to overcome the challenges and strive for greater profitability and productivity targets,” he said in a statement.

For the nine months period, Sime Darby Plantation reported a net profit of RM167 million from its continuing operations against net profit of RM556 million in the corresponding period of the previous year, while revenue stood at RM8.7 billion.

Looking ahead, Mohamad Helmy said that the group will continue to push forward with its latest strategies to thrive in the prevalent challenging business environment.

This includes balancing the profit contribution from both our upstream and downstream segments, strengthening our approach to improve operational efficiencies as well as maintaining disciplined management of our cost and liquidity.

“Given the group’s committed forward sales, the recent improvements in CPO and PK prices will have minimal impact on the group’s results for FY2019. Nevertheless, should the prices continue to rally, the group’s prospects will improve in the next financial year. By then, SD Plantation’s legacy issues impacting the group’s current results are also expected to be fully resolved,” he said.

source https://www.thesundaily.my/business/sime-darby-plantation-posts-rm32m-net-profit-in-third-quarter-LK1682184

AMMB Q2 earnings lower by 8.2%, declares 6 sen dividend

PETALING JAYA: AMMB Holdings Bhd’s net profit for the second quarter ended Sept 30, 2019 (Q220) dropped 8.2% to RM319.57 million from RM348.15 million a year ago, dragged down by the allowance for impairment on financial investments.

Its revenue rose 1.5% year-on-year (yoy) to RM2.35 billion from RM2.31 billion.

For the half-year period (1H20), AMMB’s net profit increased 2.2% to RM711.03 million from RM695.75 million, while revenue grew 5.7% to RM4.74 billion against RM4.49 billion in the half-year period last year.

It declared a higher interim dividend of 6 sen per share.

AmBank group CEO Datuk Sulaiman Mohd Tahir (pix) said in 1H20, total income for the group rose 5.6% yoy to RM2.13 billion propelled by consistent net interest income growth, stronger trading gains and investment income from group treasury and markets as well as general insurance.

During the first half of FY20, the group’s net interest income increased 4.6% yoy to RM1.35 billion, driven by consistent assets growth. NIM contracted 8bps to 1.89%, reflecting lower assets yield following the Overnight Policy Rate cut earlier this year. Non-interest income of RM784.8 million grew 7.4% yoy, largely contributed by stronger trading income and investment income from group treasury and markets and general insurance, as well as higher fee income from funds management.

The BET300 efficiency programme allows the group to re-invest some of the savings back into the businesses as well as strengthen its digital capabilities. Operating expenses remained well contained, up 4% yoy to RM1,054.8 million. Cost-to-income further improved to 49.4% from 50.4% a year ago, with a positive jaw of 2%. Consequently, profit before provision grew 7.6% yoy to RM1,078.7 million.

The group recorded a net impairment charge of RM76.6 million in 1H20 compared to RM17.9 million in the same period last year. This was mainly due to provisions on several newly impaired wholesale banking and business banking loans offset by recoveries and releases, as well as higher expected credit loss charges in retail banking, and also lower recoveries post retail debt sale.

The group’s gross impaired loans ratio stood at 1.77%, with loan loss cover at 105.8%.

“We are cautious and remain vigilant on asset quality given the challenging economic conditions.”

Gross loans increased 2.0% yoy, and broadly stable year-to-date (YTD) at RM102.0 billion, with growth in mortgages, mid corp, retail SME and business banking loans being offset by corporate loan repayments and the continued decline in auto loans. Excluding auto loans, gross loans expanded 1.6% YTD, more in line with industry growth rates.

On liquidity and capital, all banking subsidiaries of the group have maintained liquidity coverage of above 100%. The group remains well capitalised, with the FHC CET1 ratio improving to 12.6% and total capital ratio at 16.1%.

On its prospect for financial year ending March 31, 2020, Sulaiman said in tandem with a moderate economic outlook, the banking system loans growth is expected to grow around 4.6%.

“We are pleased with the group’s performance in 1H20, as demonstrated by the good progress made particularly in terms of revenue growth and cost efficiency. Through our BET300 programme, the group continues to embed cost discipline across all lines of business as we continue to improve our cost efficiency. Moreover, notable progress has been made across targeted segments and products as part of our top four strategy to place the group on a stronger and more sustainable growth path. Amidst the softer outlook for the banking sector this year, the group is resolute in its strategic focus to deliver on revenue growth, cost efficiency and capital accretion.”

source https://www.thesundaily.my/business/ammb-q2-earnings-lower-by-82-declares-6-sen-dividend-YK1682054

Malaysia’s reserves at US$103.22b: BNM

KUALA LUMPUR: Malaysia’s reserves remained usable as at end-October 2019, with official reserve assets at US$103.22 billion (RM 430.8 billion), in accordance with the International Monetary Fund’s Special Data Dissemination Standard (IMF SDDS) format.

In a statement today, Bank Negara Malaysia (BNM) said other foreign currency assets amounted to US$160.3 million (RM 669 million).

“For the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the government and repayment arising from the maturity of foreign currency Bank Negara Interbank Bills, amount to US$5.53 billion (RM23.08 billion),” it said.

The central bank said the short forward positions amounted to US$13.8 billion (RM57.6 billion) as at end-October 2019, reflecting the management of ringgit liquidity in the money market.

In line with the practice adopted since April 2006, it said the data excluded projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to US$2.56 billion (RM10.68 billion) in the next 12 months.

“The only contingent short-term net drain on foreign currency assets are Government guarantees of foreign currency debt due within one year, amounting to US$336.6 million (RM1.4 billion),” it said.

According to the BNM, there were no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions.

“The BNM also does not engage in foreign currency options vis-à-vis the ringgit,” it added. — Bernama

source https://www.thesundaily.my/local/malaysia-s-reserves-at-us-10322b-bnm-GK1682109

Alibaba launches Taobao store in MyTOWN

KUALA LUMPUR: Alibaba Group today launched its first and biggest physical Taobao store in Malaysia, in partnership with MyTOWN Shopping Centre and Lumahgo New Retail Sdn Bhd.

Named as Taobao Store by Lumahgo, the 5,000 sq ft store is comprehensive, offering a mix of offline and online shopping experience using New Retail technologies.

“The Taobao store will serve as a platform for us to showcase popular products and introduce new ones that appeal to local customers, and we hope to employ out consumer insights and technology to create new opportunities for our local partners to deliver even better services,” said Alibaba’s Tmall World Malaysia marketing manager Jess Lew at the launch of the store here, today.

The Taobao Store offers over 1,000 products across top selling categories such as electronics, beauty, home and living, and smart home appliances.

Lew also said selection of products has been curated based on the preferences and purchasing trends of local shoppers through Taobao shopping app, drawn from international and local homegrown brands including Lorenzo, Khind, KitchenAid and Deep Furniture.

“The idea of this store is that we want customers to come in, feel the experience and try the products themselves first. Profit is not the main objective as we are aiming for the best shopping experience for consumers,” she added.

Meanwhile, Lew said Alibaba is open to explore opening similar stores in other states such as Penang and Johor Bahru.

“We are also exploring the possibilities of having the Taobao app in English language to cater to the broader customers in Malaysia.

“But currently the focus will be for this store and for non-Mandarin customers, they can come here to shop with the assistance of our staff,” said Lew.

Shoppers at the store can purchase a displayed product by scanning a QR code on the electronic price tag, pick up items from the store or arrange for delivery and even installation, and make the payment directly from the app. - Bernama

source https://www.thesundaily.my/business/alibaba-launches-taobao-store-in-mytown-XK1682088

BNM’s international reserves slip slightly to US$103.22b

KUALA LUMPUR: Bank Negara Malaysia’s (BNM) reserve assets fell marginally to US$103.22 billion (RM431 billion )as at end-October 2019, from US$103.3 billion (RM432 billion) as at Oct 15, 2019.

Other foreign currency assets amounted to US$160.3 million as at end-October 2019.

For the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the government and repayment arising from the maturity of foreign currency Bank Negara Interbank Bills, amount to US$5.5 billion.

The short forward positions amounted to US$13.84 billion as at end-October 2019, reflecting the management of ringgit liquidity in the money market. In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans amounting to US$2.56 billion in the next 12 months.

BNM said the only contingent short-term net drain on foreign currency assets are government guarantees of foreign currency debt due within one year, amounting to US$336.6 million.

There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions. BNM also does not engage in foreign currency options vis-à-vis ringgit.

“Overall, the detailed breakdown of international reserves under the IMF SDDS format indicates that as at end-October 2019, Malaysia’s reserves remain usable,“ BNM said.

source https://www.thesundaily.my/business/bnm-s-international-reserves-slip-slightly-to-us-10322b-IN1681974

Kuroda warns BOJ isn’t keeping rates low to fund fiscal spending

TOKYO: Bank of Japan Governor Haruhiko Kuroda (pix) said the central bank’s ultra-loose monetary policy is aimed at hitting its inflation target, not at funding government spending, warning against complacency in getting Japan’s fiscal house in order.

Ruling party lawmakers have been piling pressure on the government to compile a big spending package, increasing the chance fiscal policy could play a bigger role in sustaining a fragile economic recovery but at the cost of adding to a debt-pile that is the biggest among advanced economies.

Kuroda repeated his view that the effect of fiscal spending in stimulating the economy can be heightened if complemented by ultra-loose monetary policy.

But that did not mean the BOJ will keep printing money to bank-roll public debt, he added.

“Our monetary easing efforts are aimed at achieving our price target, not at helping fund government spending. There needs to be a clear line drawn on this point,“ Kuroda told a parliamentary session on Friday.

Kuroda also said structural reforms must accompany fiscal and monetary stimulus measures to heighten the economy’s growth potential.

“A mix of fiscal and monetary policy isn’t enough. It’s also important to proceed with deregulation and structural reforms to heighten Japan’s medium- and long-term growth potential,“ he said.

Under a policy dubbed yield curve control, the BOJ pledges to cap long-term borrowing costs around zero in an effort to reflate growth and achieve its elusive 2% inflation target.

Critics warn that years of ultra-low rates have allowed the government to keep spending and drag its feet in fixing Japan’s tattered finances. -Reuters

source https://www.thesundaily.my/business/kuroda-warns-boj-isn-t-keeping-rates-low-to-fund-fiscal-spending-FN1681645

Stocks stop short of new peaks as Sino-U.S. tensions weigh

TOKYO: Global shares ticked up on Friday, but hesitated to test an all-time peak as investors worried a new U.S. law backing Hong Kong protests could derail Washington’s and Beijing’s efforts to end their trade war.

MSCI All Country world index, which tracks shares in 49 countries, were up 0.05% at 549.62, and would need to rise only 0.2% to reach all-time peak hit in January last year before the start of U.S.-China trade war.

MSCI’s broadest index of Asia-Pacific shares outside Japan also ticked up 0.05% in early Friday trade while Japan’s Nikkei gained 0.27%.

U.S. S&P 500 mini futures were down 0.1%. New York markets were shut on Thursday for Thanksgiving holiday and with many investors seen away also on Friday, uncertainties remain on how U.S. markets will perceive the latest clash between Washington and Beijing over Hong Kong.

China warned the United States on Thursday it would take “firm counter measures” in response to U.S. legislation backing anti-government protesters in Hong Kong.

“Since the U.S. legislation was approved unanimously by the U.S. Senate and by all but one lawmaker in the House of Representatives, the law has been expected to take effect,“ said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“It has been also expected that China will express harsh words against it. The question is what real actions Beijing will take. The working assumption for most investors is that this will not derail the trade talks, given China is suffering from an economic slowdown,“ he said.

On the whole, investors are now betting that while the law spoils the mood it would not change the game, underpinning many risk assets.

Sentiment in the region has enjoyed an additional boost from a strong performance this week of Alibaba Group shares , Asia’s largest firm by market capitalisation. Alibaba has risen 16% since their IPO in Hong Kong on Tuesday.

However, major currencies were kept in tight ranges amid a dearth of any other significant developments in Sino-U.S. trade talks.

Against the yen, the dollar traded at 109.52 yen, near its six-month peak of 109.61 set on Wednesday.

The euro stood at $1.1010, stuck in a tight range for the past week.

The British pound traded at $1.2910, staying in its $1.28-1.30 range since mid-October.

As trading in major currencies slumbers, their implied volatilities, key gauges of expected swings measured by their option prices, plumbed to new record lows this week.

One exception was the Chilean peso, which has plunged 3.5% so far this week to an all-time low, prompting the central bank to unveil $20 billion foreign currency interventions programme.

The peso has plummeted more than 10% this month following more than a month of protests over inequality that turned violent again this week.

Oil prices were little changed on Friday but look set to have one of the best performances in recent months in November, with Brent futures up 6.0% so far this month, which would be the biggest gain since April.

U.S. crude futures were little changed at $58.09 per barrel early on Friday. They have risen more than 7% this month. - Reuters

source https://www.thesundaily.my/business/stocks-stop-short-of-new-peaks-as-sino-u-s-tensions-weigh-CN1681433

Japan’s factory output posts largest fall in almost 2 years

TOKYO: Japan’s industrial output slipped at the fastest pace since early last year in October, exposing widening cracks in the economy which faces a decline in domestic and foreign demand.

Factory output fell 4.2% in October from the previous month, trade ministry data showed on Friday, below the median market forecast for a 2.1% fall and swinging from a 1.7% rise the previous month.

That matched a similar decline in January last year.

Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to decline 1.5% in November and rise 1.1% in December, the data showed.

Production was pushed down by a decrease in output of passenger cars and car engines, as well as general purpose and production machinery, the data showed.

The decline in autos production has raised concerns that the government’s sales tax hike last month will have a more sustained impact on demand for cars and car parts.

“It is increasingly likely that there will be negative growth (in the fourth quarter),“ said Takeshi Minami, chief economist at Norinchukin Research Institute.

“Domestic demand is growing worse,“ he said, adding that there appears to be a strong hit from the sales tax, which was raised to 10% from 8%.

The weak reading follows other gloomy data released this week that may further fuel calls on the government to craft a large stimulus package to keep the country’s economic recovery intact.

Official data on Thursday showed retail sales plunged at their fastest pace since early 2015 in October following the twice-postponed tax hike, boding ill for domestic demand.

The hit to consumption from the tax hike was also exacerbated by a powerful typhoon that swept across eastern and central Japan last month.

A government official said output was negatively impacted by temporary shutdowns of factories due to the typhoon and slowing production of big-ticket items following the tax hike.

A silver lining in the data came from a 0.9% increase on the previous month in electronic parts and devices, which also saw inventories rise 8.8%, suggesting firms may be preparing for an upturn in the IT cycle, although production in this sector tends to be volatile.

Minami at Norinchukin Research Institute said that it is too early to say whether a sustained pickup in electronic parts’ production will spread to the broader economy even as Asia-bound exports of such parts increase.

However, factory activity and the broader economy are likely to remain under pressure as weak manufacturers’ confidence, soft retail consumption and a delayed pickup in global growth hit demand.

Japan’s decision to implement the sales tax hike is seen as a crucial to repairing the industrial world’s largest public debt, which is more than twice the size of its $5 trillion economy.

But under the Bank of Japan’s current accommodative monetary policy, lawmakers could also step up calls for increased fiscal spending with financing costs extremely low.

Meanwhile, Japan’s jobless rate and jobs-to-applicants ratio held steady in October, separate official data showed on Friday, suggesting the nation’s tightest jobs market in decades is holding up.

The seasonally adjusted unemployment rate was steady at 2.4%, matching economists’ median forecast, figures from the Ministry of Internal Affairs and Communications showed.

The jobs-to-applicants ratio held steady at 1.57 in October from the previous month, health ministry data showed. -Reuters

source https://www.thesundaily.my/business/japan-s-factory-output-posts-largest-fall-in-almost-2-years-BN1681377

S.Korea to hold trade talks with Japan in December

SEOUL: South Korea and Japan have agreed to hold senior-level trade talks in December to discuss Tokyo’s export restrictions at the centre of a bitter dispute between the two countries, the South Korean trade ministry said on Friday.

The talks would include Japan’s tighter rules since July on the export of three high-tech materials to South Korea and its removal of Seoul from its so-called “white list” of countries with fast-track trade status, the ministry said.

Seoul responded by taking Japan off its list of fast-track trade countries, deepening the trade dispute that has festered for months and hurt some of Asia’s biggest exporters.

“We will pursue dialogue with an ultimate goal to make things like the white list or three items go back to the original state,“ Lee Ho-hyun, a South Korean senior trade ministry official, said at a news briefing.

The talks would take place in the third week of December in Tokyo, the ministry added.

The two countries agreed on Saturday to hold a summit next month in a major step towards improving relations strained by decades of bitterness over their wartime past. In a further sign of an easing of tensions, South Korea has also agreed to stick to an intelligence-sharing deal with Japan.

Officials from both countries met on Thursday to discuss holding the senior-level trade dialogue, according to the South Korean trade ministry.

The mood at the meeting on Thursday was more “friendly” than a similar meeting in July shortly after Tokyo imposed the export curbs, Lee added. -Reuters

source https://www.thesundaily.my/business/s-korea-to-hold-trade-talks-with-japan-in-december-HN1681339

Oil steady amid muted Thanksgiving trade and ahead of OPEC+ meet

TOKYO: Oil prices were steady on Friday in quiet trade with the U.S. Thanksgiving holiday underway, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of a production cut agreement to support the market.

Brent crude was down 5 cents at $63.82 a barrel by 0103 GMT, after dropping 0.3% on Thursday.

West Texas Intermediate was up by 1 cent at $58.12 a barrel. The contract gained 0.2% in the previous session with many U.S. traders already away for their holiday break.

Next week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, is high on investors’ list of things to watch.

“At least some clarity is starting to emerge surrounding the OPEC meeting, where all parties concerned will attempt to enforce stricter compliance with the existing agreement,“ said Stephen Innes, chief Asia market strategist at AxiTrader.

The group has been withholding output to support prices and analysts expect the agreement to be extended as U.S. production keeps hitting records.

Russian oil companies proposed on Thursday not to change their output quotas that are part of the deal that runs until end-March, putting pressure on OPEC+ to avoid any major shift in the policy when the group meets in Vienna.

Still, “risk-neutral is an excellent spot to be ahead of the weekend as there is a ton of headline risk that could upset the apple cart,“ Innes said.

China warned the United States on Thursday that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.

Investors are concerned any such move by China would further delay a preliminary agreement with the United States to end their trade war that has held back growth in global economies and in the consumption of oil. -Reuters

source https://www.thesundaily.my/business/oil-steady-amid-muted-thanksgiving-trade-and-ahead-of-opec-meet-MN1681259

Ringgit opens slightly firmer against US dollar

KUALA LUMPUR: The ringgit opened slightly firmer against the US dollar today, as risk-on sentiment kicked in after US President Donald Trump said negotiations for a trade deal with China were in its “final throes”.

At 9 am, the ringgit was quoted at 4.1700/1750 against the greenback from Thursday’s close of 4.1720/1750.

A dealer said Trump’s remarks had raised hope in the market that the two economic giants could wrap up their trade deal soon, despite the US President’s signing of Hong Kong Human Rights and Democracy Act into law recently.

Meanwhile, AxiTrader chief Asia market strategist Stephen Innes said the trade talk optimism is papering the economic cracks in China as so far, and risk asset continued to turn a blind eye to the deteriorating economic landscape.

“However, the market still feels a bit squeezy, but there’s a risk-on tone that is trying to climb out of its 24-hour Hong Kong bill-imposed cocoon,“ he said in a note today.

Innes reiterated that the ringgit performance would continue to track the yuan’s movement as local traders continue to wear trade talk emotions on their sleeves.

“In the meantime, they will key on equity and bond flows while cautiously biding time ahead of the next trade headline, “ he added.

At the opening bell, the local unit traded higher against other major currencies.

It rose against the Singapore dollar to 3.0525/0573 from 3.0537/0579 on Thursday, strengthened against the euro to 4.5912/5971 from 4.5942/5992 yesterday and went up against the pound to 5.3831/3899 from 5.3965/4020.

Vis-a-vis the yen, the local unit also appreciated to 3.8075/8131 from 3.8125/8156 at Thursday’s close. -Bernama

source https://www.thesundaily.my/business/ringgit-opens-slightly-firmer-against-us-dollar-CN1681163

Bursa Malaysia marginally lower at the opening

KUALA LUMPUR: Bursa Malaysia opened marginally lower today on lack of catalysts.

At 9.10 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) edged down 0.36 of-a-point to 1,583.41 from Thursday’s close of 1,583.77.

At the opening bell, the barometer index was 1.93 points higher at 1,585.7.

On the broader market, there were 194 gainers and 113 losers, while 184 counters unchanged, 1,518 untraded and 70 others suspended.

Turnover amounted to 195.55 million shares worth RM120.89 million.

Malacca Securities Sdn Bhd said local equities were still looking decidedly unsettled after yesterday’s fall that pushed the key index on the brink of 1,580 support and placing its expectations of a rangebound trend in jeopardy.

It noted that although the near-term outlook remains clouded, there may still see some mild reprieve today as the key index attempts to end the month on a more positive tone.

“On the whole, however, market conditions are still insipid with market following still largely indifferent as the results reporting season nears its end. Under the prevailing environment, it would appear that the downward drift scenarios are still intact for now that could still see the key index staying subdued for longer.

“Nevertheless, we think that there could still be some year-end window dressing activities next month that could help to provide some support to the key index over the short-to-medium term,“ it said.

Among heavyweights, Maybank and Axiata added two sen each to RM5.84 and RMRM4.28, respectively, Public Bank, Petronas Chemicals and IHH Healthcare were each flat at RM19.74, RM7.10 and RM5.38 while TNB declined 22 sen to RM13.50 and CIMB eased one sen to RM5.22

Of actives, Meridian and Velesto edged up half-a-sen each to seven sen and 38.5 sen, PUC was flat at five sen, KNM trimmed one sen to 35.5 sen, while Prinsiptek and Heng Huat inched down half-a-sen to 10 sen and 3.5 sen, respectively.

The FBM Emas Shariah Index shed 24.63 points to 11,749.75, the FBM Emas Index was 12.44 points easier at 11,210.53, the FBM 70 slipped 40.69 points to 13,908.08, the FBMT 100 Index decreased 9.49 points to 11,030.49 and the FBM Ace shaved off 40.91 points to 4,768.58.

Sector-wise, the Plantation Index expanded 31.14 points to 7,149.71, the Financial Services Index edged up 0.85 of-a-point to 15,451.0, and the Industrial Products & Services Index inched down 0.11 of-a-point to 150.81. - Bernama

source https://www.thesundaily.my/business/bursa-malaysia-marginally-lower-at-the-opening-HN1681090

7-Eleven Malaysia launches mandatory general offer for Caring Pharmacy

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s wholly owned subsidiary Convenience Shopping (Sabah) Sdn Bhd and persons acting in concert (PACs) propose a conditional mandatory general offer (MGO) for Caring Pharmacy Group Bhd for RM2.60 per share.

This values Caring Pharmacy at RM566 million.

The MGO will be triggered after Convenience Shopping and PACs complete the acquisition of a 25.35% stake in Caring Pharmacy from Motivasi Optima Sdn Bhd for RM143.5 million or RM2.60 per share, which will bring their shareholding in Caring Pharmacy to 38.57% from 13.22%.

Motivasi Optima’s stake in Caring Pharmacy will then be reduced to 25%.

The PACs are 7-Eleven, Tan Sri Vincent Tan Chee Yioun, Jitumaju Sdn Bhd and U Telemedia Sdn Bhd.

The offer price represents a 10 sen or 4% premium against Caring Pharmacy’s yesterday closing price of RM2.50.

7-Eleven intends to maintain Caring Pharmacy’s listing status on the Main Market of Bursa Securities subsequent to the MGO.

The proposed acquisition will be funded by a combination of bank borrowings and internal funds.

7-Eleven said it was undertaking the proposed acquisition for several reasons: an immediate expansion of network and reach of stores and product range through the combined operations; immediate access to a fully operational and profitable pharmacy business; opportunities to cross-sell products from both group of companies; expansion into e-commerce and expected economies of scale and synergies from the operational optimisations.

As at Aug 31, 2019, Caring Group has a total of 129 community pharmacies, and the proposals will allow 7-Eleven to have immediate access to a new network of retail stores and to widen its product range through the combined operations.

“The proposals would allow the 7-Eleven group to expand its sales channel by leveraging on Caring’s current e-commerce network and infrastructure.

“Given the current success of Caring’s e-commerce platform and mobile application, the 7-Eleven Group would not only be able to expand its reach to customers by listing its products on Caring’s online platform, but at the same time bring more convenience and flexibility to its customers, value-added services through the mobile application, and ultimately improving customer experience as well,” 7-Eleven noted.

Caring’s online sales platform, also known as CARiNG e-Store, was launched in 2018 to allow customers to purchase products online and collect them at selected outlets or via delivery.

Since its launch, Caring’s online service has seen its monthly transactions more than double from June 2018 to May 2019, while its mobile application has close to 390,000 members.

The proposals are expected to be completed in the first half of next year.

source https://www.thesundaily.my/business/7-eleven-malaysia-launches-mandatory-general-offer-for-caring-pharmacy-BM1680300

HEIN

PETALING JAYA: Heineken Malaysia Bhd’s net profit soared 31% to RM103.3 million in its third quarter ended Sept 30, 2019 against RM78.87 million in the same quarter a year ago, on the back of revenue growth, improved cost efficiency as well as the timing of commercial spend for new product launches.

Revenue for the quarter increased 17.7% to RM602.53 million from RM512.01 million.

Heineken’s managing director, Roland Bala commented that its third-quarter results reflect strong execution of commercial priorities and operational efficiencies in a challenging environment.

“During the quarter, we were pleased to launch exciting innovations providing our consumers exceptional experiences with our world-class brand campaigns and activations,” he said in a press release.

Moving forward, Roland stated that the group remains cautious on the outlook given the softening economic environment, competitive market conditions and the continued threat from the illicit trade.

“Revenue for the final quarter is expected to be strong. However, the intensified commercial activations planned for Q4 will impact on profitability for the quarter. Overall, the group is confident of delivering a satisfactory performance for the full year,” he said.

Heineken’s nine-month net profit expanded 21.5% to RM221.8 million from RM182.52 million, with revenue rising 20% to RM1.64 billion from RM1.37 billion.

source https://www.thesundaily.my/business/hein-XM1680275

Affin Bank earnings halve in Q3 on allowance for impairment losses

PETALING JAYA: Affin Bank Bhd’s net profit dived 49.9% to RM72.4 million for its third quarter ended Sept 30, 2019 from RM144.56 million reported in the same quarter of the previous year, mainly due to allowance for credit impairment losses of RM43.11 million.

Its revenue declined 4.4% to RM474.26 million from RM496.25 million.

For the nine-month period, Affin reported a net profit of RM365.66 million, a 1.8% increase from RM359.34 million in the same period a year ago, while revenue was down 1.5% to RM1.44 billion from RM1.47 billion.

The bank told Bursa Malaysia that during the period, its net interest income decreased RM81.9 million, in line with the reduction in financial investments at FVOCI of RM4.8 billion and loans, advances and financing portfolio of RM2.4 billion.

It posted a higher non-interest income of RM588.5 million, a 11.3% increase due to higher net gain on financial instruments of RM106.3 million. The fee-based income, however, reduced by RM28 million to RM320.9 million mainly due to the weaker market environment, particularly in the asset management and stockbroking businesses.

For the first nine months of 2019, the group’s total loans, advances and financing shrunk 4.8% to RM46.6 billion due to rebalancing of portfolios.

As at Sept 30, 2019, its gross impaired loan (GIL) was at 3.42%. It said the two accounts affecting the GIL ratio are from the real estate and oil & gas sectors. Affin expects to resolve one of those accounts by Q1 2020.

Going forward, Affin group CEO Kamarul Ariffin Mohd Jamil said the group will continue to deliver innovative financial solutions to the customers.

source https://www.thesundaily.my/business/affin-bank-earnings-halve-in-q3-on-allowance-for-impairment-losses-GM1680228

Pesona Metro unit SEP Resources proposes sukuk of up to RM150m

Pesona Metro unit SEP Resources proposes sukuk of up to RM150m

PETALING JAYA: Pesona Metro Holdings Bhd’s 70%-owned subsidiary SEP Resources (M) Sdn Bhd proposes to issue Islamic medium-term notes of up to RM150 million in nominal value under the syariah principle of Wakalah Bi Al-Istithmar.

The group told Bursa Malaysia that the sukuk wakalah will have a tenure of 11 years from the date of issuance.

The proceeds from the sukuk wakalah issuance will be utilised for the subscription of murabahah stocks to be issued by Budaya Positif Sdn Bhd, a wholly-owned subsidiary of SEP Resources.

The sukuk wakalah is secured against a list of securities including the corporate guarantee from Pesona Metro and has been accorded with a preliminary long-term rating of “AA1” (stable outlook) by RAM Rating Services Bhd.

MIDF Amanah Investment Bank Bhd and Public Investment Bank Bhd are the joint principal advisers, joint lead arrangers and joint lead managers for the sukuk wakalah.

source https://www.thesundaily.my/business/pesona-metro-unit-sep-resources-proposes-sukuk-of-up-to-rm150m-DM1680162

Berjaya Corp posts RM45.6m net profit in Q1

PETALING JAYA: Berjaya Corp Bhd (BCorp) posted a pre-tax profit of RM45.6 million for its first quarter ended Sept 30 for FY2020, which was mainly contributed by the gaming business segment, but impacted by losses from the property investment and development segment.

Revenue for the quarter stood at RM2.07 billion, substantially contributed from the gaming business segment operated by Sports Toto Malaysia Sdn Bhd, and the motor distribution business segment operated by H.R. Owen.

Looking ahead, the group said its operating environment will remain challenging going forward, given the prevailing economic conditions and global financial outlook.

source https://www.thesundaily.my/business/berjaya-corp-posts-rm456m-net-profit-in-q1-YM1680100

umw

PETALING JAYA: UMW Holdings Bhd saw its net profit for the third quarter ended Sept 30 (Q3’19) fall 13.9% to RM110.29 million, from RM128.13 million a year before, mainly due to lower vehicles sales in the automotive segment and weaker performance in the equipment segment.

Revenue for the quarter was also 12.4% lower at RM2.88 billion, from RM3.29 billion.

A special dividend of 4 sen per share was declared.

In a filing with Bursa Malaysia, UMW said its automotive segment registered a lower sales volume of vehicles for Q3’19, as the previous corresponding quarter had been boosted by the GST free period from June 1, 2018 to Aug 31, 2018.

The group’s heavy and industrial equipment businesses reported lower revenue following intense competition and sluggish demand in the current quarter. Its manufacturing and engineering segment also posted lower revenue and pre tax profit.

For the nine-month period, UMW’s net profit sank 22.2% to RM253.98 million, from RM326.59 million previously as the group had a one-off reversal of provision amounting to RM207 million in the corresponding period.

Revenue was flat at RM8.62 billion.

Looking ahead, UMW president and group CEO Badrul Feisal Abdul Rahim said the automotive segment will focus on introducing new, appealing and value-for-money models to remain competitive in the Malaysian automotive industry.

“Expansion of products and rental business are expected to drive the performance of the industrial equipment sub-segment, while the heavy equipment business may benefit from the recent revival of some infrastructure projects in Malaysia.

source https://www.thesundaily.my/business/umw-YG1679980

Proton takes pole position in October car sales

PETALING JAYA: Proton took the lead in the local automotive sector, with its sales volume increasing 87% year-on-year (yoy) and 9% month-on-month (mom), according to Affin Hwang Capital.

“Judging from strong bookings for the facelifted Saga and popular demand for the X70, Proton is poised to achieve its 2019 sales target of 100,000 units, we believe,” it said in a report.

Proton’s cumulative 10-month (10M 19) sales volume of 79,000 units (+46%) has already exceeded its annual sales volume over the past three years.

The research house said Proton has solidified its grip in second place in Malaysia’s automotive market as its 10M19 market share stood at 16% against Honda’s share of 14.4%.

Perodua also reported a commendable sales volume of 22,800 units (+17% yoy; +34% mom), driven by strong demand for Perodua key models (Myvi, Axia and Aruz).

“We learnt that Perodua has delivered over 10,400 units of the facelifted Axia from the accumulated 20,000 bookings received since the launch in mid-October,” said Affin Hwang.

The research house noted that the national car makers saw their sales grow 31% yoy to 32,300 units, while non-national car players registered a 5% yoy decline to 21,600 units.

“Sequentially, most key brands saw higher monthly sales growth in October 2019, except BMW/MINI, which bucked the trend,” it said.

As a result of the stronger demand for local cars, the Japanese car sales volume continued to slump yoy in 10M19 – Toyota (-6%), Honda (-18%), Nissan (-34%) and Mazda (-22%).

The premium segment also saw lacklustre performance in the period, as BMW/Mini and Mercedes-Benz 10M19 sales volume fell 17% and 25% respectively.

Overall, Affin Hwang said the 10M19 sales volume of 496,900 units is within its expectations, accounting for 83% of the forecast for 2019.

It is maintaining a neutral stance on the sector, with MBM Resources being the top pick due to its appealing valuation.

source https://www.thesundaily.my/business/proton-takes-pole-position-in-october-car-sales-DG1679599

Ringgit ends easier against US dollar

KUALA LUMPUR: The ringgit ended easier against the US dollar today following the decline in global crude oil prices, said a dealer.

At 6pm, the ringgit settled at 4.1720/1750 against the greenback compared with yesterday’s close of 4.1700/1740.

A dealer said the benchmark Brent crude trimmed 0.71% to US$62.56 per barrel at the close today, which impacted the valuation of the local note.

He said oil prices had declined today, extending losses from the previous session after official data showed that the United States’ (US) crude and gasoline stocks rose against expectations.

“Crude stockpiles in the US swelled 1.6 million barrels last week as production hit a record high of 12.9 million barrels per day and refinery runs slowed,” he told Bernama, quoting the US Energy Information Administration.

Meanwhile, the ringgit traded lower against other major currencies.

The local currency was lower against the Singapore dollar at 3.0537/0579 from 3.0520/0561 on Wednesday and also declined versus the British pound to 5.3965/4020 from 5.3626/3694 yesterday.

It improved against the yen to 3.8125/8156 from 3.8190/8237 but depreciated against the euro to 4.5942/5992 from 4.5908/5956 previously. - Bernama

source https://www.thesundaily.my/business/ringgit-ends-easier-against-us-dollar-AG1679453

Higher CPO price, operational improvements to drive FGV’s financial performance higher

KUALA LUMPUR: The current uptrend in crude palm oil (CPO) price, coupled with improvements in FGV Holdings Bhd’s operational performance will likely drive its financial performance higher.

Group chief executive officer, Datuk Haris Fadzilah Hassan (pix) said CPO price for September and October ranged between RM2,150 and RM2,200 per tonne and climbed to RM2,500 per tonne in November amidst lower production and stronger export demand.

“In the fourth quarter this year, we expect CPO price to range between RM2,200-RM2,400 per tonne. Some experts are even forecasting it to go up to RM2,700 per tonne for next year.

“We hope it can stay at this level because this is a breather that all players are looking forward to considering that we have experienced prolonged low prices for the last couple of years,” he told a press conference on FGV’s third quarter ended Sept 30, 2019 (Q3 2019) financial performance here today. - Bernama

source https://www.thesundaily.my/business/higher-cpo-price-operational-improvements-to-drive-fgv-s-financial-performance-higher-AG1679266

Bursa Malaysia lower at the close

KUALA LUMPUR: Bursa Malaysia closed lower amid broad selling activities and in line with the regional markets on fears that the United States’ support for Hong Kong pro-democracy protesters would thwart its trade deal with China.

At 5pm, the FTSE Bursa Malaysia (FBM KLCI) fell 3.41 points or 0.22 per cent to finish at 1,583.77 from 1,587.18 at Wednesday’s close. The benchmark index moved between 1,582.28 and 1,588.51 throughout the day.

The FBM KLCI opened 0.8 of-a-point higher at 1,588.08.

On the broader market, losers thumped gainers 501 to 305, with 386 counters unchanged, 822 untraded and 76 others suspended.

Volume slipped to 2.13 billion shares worth RM1.44 billion from Wednesday’s 2.51 billion shares worth RM1.66 billion.

On Wednesday, US President Donald Trump signed a bill backing pro-democracy protesters in Hong Kong. The bill was approved by the US Senate and permits Washington to impose sanctions or even suspend Hong Kong’s special trading status over rights violations.

AxiCorp chief Asia market strategist Stephen Innes said while the Hong Kong bill headlines were far from signalling the doors were always open, the markets appeared to be taking things in stride on the assumption that the US legislation was unlikely to torpedo phase one of the trade deal.

“But of course, it does provide a stark reminder that on one level or another, the US-China frictions are always going to be a thorn in the market’s side.

“In a case of the pot calling the kettle black, China’s Hong Kong and Macau Affairs Office strongly condemned the US law on Hong Kong and said that the US is the biggest black hand behind the unrest in Hong Kong, according to news reports,” he said.

Regionally, Hong Kong’s Hang Seng Index fell 0.22% to 26,893.73, Japan’s Nikkei 225 slid 0.12% to 23,409.14 and Singapore’s Straits Times Index decreased 0.40% to 3,202.67.

Meanwhile, among Bursa Malaysia’s heavyweights, TNB advanced 16 sen to RM13.72 and Public Bank was flat at RM19.74. Maybank fell six sen to RM8.52, Petronas Chemicals shed three sen to RM7.10, Maxis shaved off six sen to RM5.35 while CIMB and IHH Healthcare eased two sen each to RM5.23 and RM5.38, respectively.

Of the actives, Yong Tai edged up half-a-sen to 22 sen, PUC and Netx stayed put at five sen and two sen, respectively, while Solarvest gave up 6.5 sen to 75.5 sen, KNM slipped two sen to 36.5 sen, and Bumi Armada went down 1.5 sen to 51 sen.

FGV surged seven sen to RM1.31, with 26.74 million shares traded, on news that the agri-commodity group reduced its net loss to RM262.41 million for the third quarter ended Sept 30, 2019, compared with a net loss of RM849.46 million recorded a year earlier.

Its revenue rose 11 per cent year-on-year to RM3.55 billion from RM3.19 billion previously.

The FBM Emas Index was 35.09 points easier at 11,222.97, the FBMT 100 Index weakened 35.41 points to 11,039.98, the FBM Ace was down 16.66 points at 4,809.49, the FBM Emas Shariah Index fell 33.03 points to 11,774.38 and the FBM 70 decreased 92.62 points to 13,948.77.

Sector-wise, the Industrial Products & Services Index edged down 0.90 of-a-point to 150.92, the Financial Services Index shed 4.90 points to 15,450.15 and the Plantation Index slid 11.71 points to 7,118.57.

Main Market volume shrank to 1.30 billion shares worth RM1.27 billion from 1.60 billion shares worth RM1.40 billion on Wednesday.

Warrants turnover fell to 227.52 million units valued at RM38.70 million versus 244.24 million units valued at RM49.24 million yesterday.

Volume on the ACE Market declined to 601.17 million units worth RM134.05 million from 672.23 million units worth RM207.12 million.

Consumer products and services accounted for 175.71 million shares traded on the Main Market, industrial products and services (212.52 million), construction (126.63 million), technology (81.40 million), SPAC (nil), financial services (40.18 million), property (207.74 million), plantations (93.13 million), REITs (6.10 million), closed/fund (nil), energy (277.45 million), healthcare (13.23 million), telecommunications and media (35.85 million), transportation and logistics (13.70 million), and utilities (16.03 million). - Bernama

source https://www.thesundaily.my/business/bursa-malaysia-lower-at-the-close-HG1679229

Tabung Haji records RM500m net profit in Q3

KUALA LUMPUR: Pilgrims Fund Lembaga Tabung Haji (TH) recorded a net profit of RM500 million in the third quarter of this year, boosting profit for the first nine months to RM1.3 billion.

In a statement today, TH said the positive outcome was a result of ongoing cost-saving measures in its management and administration.

The company also recorded earnings of RM900 million for the same quarter, increasing revenue for the first nine months of 2019 to RM2.1 billion.

TH said the funds were generated mainly from fixed income asset investment (RM1.1 billion), real estate investment (RM400 million), equity investment (RM300 million) and Islamic money market instrument investment (RM300 million).

It said the shift in TH’s investment strategy to a more stable investment asset managed to ease the pressure from equity market volatility caused by global trade war tensions.

“Depositors’ support and confidence in TH as an institution that helps Muslims to save for their haj pilgrimage remain intact, with deposits reaching RM70 billion as of Sept 30, 2019.

“Throughout the three months in the third quarter of 2019, more than 87,000 new savings accounts were opened, increasing the number of depositors to 9.43 million,“ it added. -- Bernama

source https://www.thesundaily.my/business/tabung-haji-records-rm500m-net-profit-in-q3-DH1678566

Kumpulan Powernet secures RM254.32m sewerage job

PETALING JAYA: Kumpulan Powernet Bhd (KPower) has received a letter of award from Signvest Sdn Bhd to undertake the construction and completion of sewerage treatment facilities and upgrading works as well as the construction of a Green Building Index-certified building of 12 floors.

According to the company’s Bursa filing, the contract is worth RM254.32 million and the project is expected to be completed within 36 months from the commencement date of each of the relevant projects.

“The scope of work includes project management, supply of labor, materials, machineries, fixing accessories, structural and civil works. The company will provide a bank guarantee from a bank in an amount equal to 5% of the contract sum of the project (performance bond),” it said.

The value of the performance bond will be reduced to 2.5% from the date of the issuance of the certificate of practical completion for each of the projects.

“The board anticipates that KPower’s foray into the provision of construction related services from the fulfilment of the award will in future, result in a diversion of 25% or more of the net assets of KPower and/or will contribute 25% or more to the net profits of KPower,” it added.

source https://www.thesundaily.my/business/kumpulan-powernet-secures-rm25432m-sewerage-job-LH1678287

Japan’s retail sales slump the most since 2015 as tax hike hits demand

TOKYO: Japan's retail sales tumbled at their fastest pace in more than 4-1/2 years in October as a sales tax hike prompted consumers to cut spending, raising a red flag over the strength of domestic demand.

The Japanese government increased the nationwide sales tax to 10% from 8% on Oct. 1, in a bid to fix the industrial world's heaviest public debt burden, which is more than twice the size of the country's gross domestic product.

However, some analysts have warned the tax hike, previously postponed twice, could leave the economy without a growth driver amid a slump in exports and production and as other factors drag on the consumer sector.

Retail sales fell 7.1% in October from a year earlier, pulled down by weak demand for big ticket items such as cars and household appliances as well as clothing, trade ministry data showed on Thursday, with department stores hit particularly hard.

The drop was the biggest since a 9.7% fall in March 2015 and worse than a 4.4% decline predicted by economists in a Reuters poll.

"Regardless of today's outcome, consumption has been of a weak tone, and consumer sentiment is getting worse," said Taro Saito, executive research fellow at NLI Research Institute.

"Incomes haven't been rising originally, so consumption hasn't been growing since before the sales tax hike."

The slump was also sharper than the declines reported after the previous two sales tax hikes, in 1997 and 2014, suggesting other factors are dragging on consumption.

"Retail sales fell more sharply in October than after previous sales tax hikes," said Tom Learmouth, Japan economist at Capital Economics.

"The fall in sales was slightly larger than the 13.7% m/m plunge which followed both the 1997 and 2014 sales tax hikes," he wrote in a note. Sales fell 4.3% in April 2014, the month of the previous tax hike.

Seasonally-adjusted retail sales dropped 14.4% month-on-month in October, the data showed.

The negative reading comes after separate data this month showed Japan's economy nearly stalled in the third quarter, while exports in October shrank at their fastest pace in three years.

The gloomy conditions have led to calls for the government to compile a big spending package to keep the country's fragile economic recovery on track.

The 2014 previous tax hike to 8% from 5% hit the broader economy hard as households tightened their purse strings after front-loading purchases before the hike.

Policymakers this time around do not expect the October tax hike to trigger such a big swing in demand, given the smaller hike and various measures to help offset the hit to spending.

However, analysts said retail sales in October were also hit by poor weather, after a huge typhoon ripped through central and eastern Japan, forcing stores and restaurants to temporarily close.

Others also noted more structural pressures faced by retailers even before the sales tax hike, such as the prolonged decline in real wages.

Data earlier this month showed inflation-adjusted wages rose 0.6% in the year to September, their first increase since the end of last year.

All those factors pose challenges to a government seeking to shake consumers out of a long-entrenched deflationary mindset, which has weighed on prices, hurt company profits and established a prolonged regime of ultra-easy monetary policy.

Adding to these woes is the risk retailers will continue to cut prices to offset the hit from the tax hike, while many stores are also offering discounts for cashless payments.

The government has introduced a rebate programme for cashless transactions designed to both soften the tax hike blow to retailers and encourage Japanese consumers to use electronic payments instead of cash.

Other retailers are simply reducing prices to lure customers.

"This could spark stiff price competition and induce deflation. Small firms that lack competitiveness will be forced out of business," Yukio Kawano, the head of Japan Supermarket Association, told Reuters. - Reuters

source https://www.thesundaily.my/business/japan-s-retail-sales-slump-the-most-since-2015-as-tax-hike-hits-demand-XH1678231

FGV narrows Q3 losses to RM262.4m

PETALING JAYA: FGV Holdings Bhd narrowed its net loss for the third quarter ended Sept 30 to RM262.4 million, from RM849.5 million a year ago attributable in large part to impairments amounting to RM304 million, lower crude palm oil (CPO) price realised for the period and losses in the group’s sugar business.

Revenue for the period increased to RM3.55 billion, 11% higher than RM3.19 billion, due to significantly improved operational performance resulting in higher yields and lower costs.

‘The higher revenue was achieved despite a sharp decline in CPO price and the lower average selling price for sugar. For 3Q19, CPO prices averaged RM1,983 per metric tonne (MT), which was 11% lower than the average CPO price realised of RM2,224 per MT for 3Q18,” the group said in a statement.

Group CEO Datuk Haris Fadzilah Hassan said with a higher CPO price seen for the fourth quarter, FGV’s operational numbers would continue to improve.

“In addition to improving palm oil operations, FGV is also repositioning itself to capitalise on its large landbank and vast resources to create alternative earnings streams.

“We have identified clear strategies to derive value within the circular economy and to enter into adjacent businesses that will enable us to sweat our assets more. Potentially we are looking at additional revenues of RM 100 million a year,” he said.

For the nine months ended Sept 30, FGV’s net loss improved 63.5% to RM318 million, compared with a net loss of RM871.8 million previously. Revenue was slightly lower at RM10.1 billion, from RM10.2 billion before.

Looking ahead, Haris said he believed FGV is on track to achieve the tough targets that have been set by its board.

“This marked improvement in operational numbers can be attributed to the new agricultural management systems and processes that have been implemented over the last several months,” he said.

source https://www.thesundaily.my/business/fgv-narrows-q3-losses-to-rm2624m-EH1678107

OCK to partner with China Unicom for telecommunication, technology services

PETALING JAYA: OCK Group Bhd has inked a memorandum of understanding with China Information Technology Designing & Consulting Institute Co Ltd (CITC).

CITC is a subsidiary of China United Network Communications Group Co Ltd (China Unicom).

OCK said under the MOU, both parties will collaborate in telecommunication and technology services.

The telecommunication services, include but not limited to, mobile infrastructure and network services including 5G and fibre optic infrastructure & bandwidth leasing. Meanwhile, the technology services, include but also not limited to, 5G and beyond applications services, Internet of Things and artificial intelligence.

CITC is obliged to perform technical & market analysis; recommend right proposals and provide end-to-end information network solutions for the construction of telecommunication networks, amongst others.

OCK in turn is to provide, amongst others, site access and to engage with the related authorities for all the relevant approvals and licensing.

“This signing allows OCK to bring in smart city platforms and applications into Malaysia. In fact, China Unicom has already successfully implemented these platforms and applications in a few cities in China,” said OCK group managing director Sam Ooi Chin Khoon.

source https://www.thesundaily.my/business/ock-to-partner-with-china-unicom-for-telecommunication-technology-services-EH1678071

Maybank’s Q3 profit up 2.1% to RM2b

PETALING JAYA: Malayan Banking Bhd (Maybank) reported a 2.1% rise in net profit to RM2 billion for the third quarter (Q3) ended September 30, 2019 against RM1.96 billion in the previous corresponding period, driven by a 14.1% increase in net operating income.

This came on the back of a 38.6% expansion in net fee based income and a 6% growth in net fund based income.

Revenue for the quarter increased 14.7% to RM13.83 billion from RM12.06 billion.

Maybank’s nine-month net profit, however, slipped to RM5.75 billion from RM5.79 billion, with revenue growing 13.6% to RM39.86 billion from RM35.09 billion.

For the first nine months of the year, Maybank’s overall loans grew 3.4%, underpinned by the Malaysian operations (+5.3%) as well as loan expansion in markets such as Greater China and Indo-China.

Group deposits increased at a faster pace of 5.5%, led by growth in Malaysia (+7.5%), Singapore (6%) and Indonesia (+4.5%).

This resulted in improvement in the loan-to-deposit ratio to 92.5% as at September 2019 from 94.4% a year earlier.

In Q3, Maybank’s net interest margin (NIM) expanded to 2.32% from 2.19% in Q2. However, for the nine-month period, its NIM was marginally lower by 5 basis points to 2.27% from 2.32% to a year earlier, attributable mainly to the impact of the base lending rate reduction and tapering off of low-cost deposits in the Indonesian operations.

Its gross impaired loans ratio rose marginally to 2.67% from 2.65% in the same period last year, due to the ongoing trade war which affected businesses globally, especially in Singapore.

Meanwhile, its common equity tier 1 ratio strengthened to 14.44% from 13.59% a year ago, and total capital ratio rose to 18.07% from 17.62%, while liquidity coverage ratio came in at 141.5%.

Looking ahead, Maybank group president & CEO Datuk Abdul Farid Alias said the group’s focus on pricing discipline, strong capital and liquidity positions as well as sound risk management and operational efficiency will remain key priorities in the coming months.

“This year has proven to be relatively challenging for some of our clients due to the slower growth in global trade. We are therefore proactively working with them to restructure their facilities. In the meantime, we will continue to be vigilant in managing our assets quality while growing our portfolio.”

At the midday break, Maybank’s share price fell 8 sen to RM8.50 on 3.06 million shares done.

source https://www.thesundaily.my/business/maybank-s-q3-profit-up-21-to-rm2b-EE1677969

Axiata’s Q3 net profit slides 9.4% to RM119.7m

PETALING JAYA: Axiata Group Bhd saw a 9.4% decrease in its net profit to RM119.7 million for the third quarter ended Sept 30, due to the absence of M1 Limited’s contribution following its disposal, as well as higher taxes in Bangladesh.

However revenue went up 3.5% to RM6.2 billion from better performance by most of its operating companies (opcos, the group said in a statement today.

Axiata strengthened its balance sheet with gross debt/EBITDA at 1.9 times compared to 2.3times in the same quarter last year. The group also pared down its debts by RM2.2 billion during the quarter, and its cash balance stood at RM5 billion.

Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid said the group’s financial performance is a testimony to its disciplined and rigorous execution of operational and cost excellence initiatives.

“As Axiata transforms to realise its digital vision, staying focused on profit and cash in the short-term to strengthen our financial footing will be a key enabler for sustainable growth. In this regard, the Board is encouraged by the achievements in this third quarter,” he said.

For the nine month period, Axiata saw a rise in its net profit to RM1 billion, attributed to better underlying performance across most opcos, foreign exchange gain, discontinuation of losses related to its investment in India, gain on disposal of non-strategic investments and disposal of investment rights in India.

Revenue grew 4% to RM18.3 billion as a result of strong data revenue growth.

President and CEO Tan Sri Jamaludin Ibrahim said the group’s performance shows it has successfully ‘shifted gear’ these last nine months to take the lead among its peers in the region.

““We have been working hard to step up on operational excellence across the group and maintain the gruelling momentum since unveiling our 2019-2020 plans. Thus far, our main concern in most of our markets is in regulatory risks.

“Given the current trajectory and barring unforeseen circumstances, we are likely to exceed targeted FY19 headline KPIs for EBITDA growth of 5%-8% and ROIC of 5.2%-5.6%. Revenue growth at 3%-4% is likely to be below,” he added.

source https://www.thesundaily.my/business/axiata-s-q3-net-profit-slides-94-to-rm1197m-ME1677817