News by JF Apex Securities

We believe the group will resume its growth trajectory in FY2017 given more construction works in the pipeline, especially under government initiatives such as the Economic Transformation Programme, transit-oriented development and the corridor and city transformation programmes.

SCH Group Bhd registered third quarter of financial year 2016 (3QFY16) net profit of RM700,000, soaring six-fold quarter-on-quarter (q-o-q), but down 66.7% year-on-year (y-o-y). Its nine months of FY16 (9MFY16) results with net earnings of RM2 million, down 72.2% y-o-y, were below our estimates, accounting for 37% of our FY16 forecast.

Gadang Holdings Bhd posted top line of RM248.9 million and bottom line of RM30.5 million in the fourth quarter of financial year 2016 (4QFY16), in which revenue surged 41.5% quarter-on-quarter (q-o-q) and 46.6% year-on-year (y-o-y), while net profit jumped 21.5% q-o-q and 20.1% y-o-y. 

LBS emerged as a substantial shareholder of ML Global following the company’s placement exercise as part of its regularisation plan to exit from PN17.

On a q-o-q basis, LBS posted a better net profit backed by higher progress billings as more houses were handed over to buyers and higher product margin. However, on a y-o-y basis, the group’s net earnings were slightly lower, affected by a higher effective tax rate despite achieving higher revenue and profit before tax.

IJM reported net profit of RM174.8 million for its second quarter FY16. The quarterly earnings tumbled 52.8% quarter-on-quarter (q-o-q), but jumped 13.1% year-on-year (y-o-y) as there was an one-off gain derived from the disposal of 74% equity interest in Jaipur Mahua Tollway Pvt Ltd totalling RM168.7 million.