Paramount posts flattish Q1 net profit of RM6.96m - Business News

KUALA LUMPUR: Paramount Corp Bhd's net profit in the first quarter ended March 31, 2018, was little changed at RM6.96mil versus RM6.98mil in the previous corresponding quarter.Group revenue rose 13% to RM162.25mil due to higher contribution from the education division, and profit before tax was led marginally higher by 3% to RM18mil. "Revenue for the education division was significantly higher at RM70.8 million (1Q2017: RM40.8 million) mainly due to consolidation of R.E.A.L. Education Group of RM27 million from 11 April 2017 coupled with the higher student enrolment at KDU University College (Glenmarie and Penang)," it said in a stock exchange filing.Profit before tax for the division was higher at RM12.7mil versus RM6.9mil in 1Q17.However, the improvement in contribution from the education division was offset by lower progressive billings from the property division.Revenue for the property division decreased 11% to RM91.4mil due to the lower level of construction activities achieved coupled with the completion of certain phases within its developments.Profit before tax for the division decreased in tandem by 34% to RM8.7mil.Moving forward, Paramount said its unbilled sales of RM736mil as at March 31 is expected to contribute positively to its immediate future financial performance.According to the group, it had an undeveloped landbank of 731.4 acres as at March 31.Among its plans in 2018, the group is targeting to launch a mixed-use development project in the vicinity of Klang's main busines and commercial area where it will construct a new Sri KDUInternational school.With regards to the education segment, Paramount believes there is untapped growth potential in the pre-school and enrichment centre segments.The group said it has opened three new pre-school centres in 1Q18 and will leverage on synergies for student retention with kindergarten student graduating to its other education centres.

Source:The Star

May 23, 2018 09:33 UTC

KLCI falls 40 points, broad selling across Bursa Malaysia - Business News

KUALA LUMPUR: It’s sea of red on the local bourse, with losers outpacing gainers, mirroring the performance on key Asian markets.The benchmark FBM KLCI plunged 40.78 points, or 2.21% to 1,804.25, its intra-day low at closing. The index opened 1.63 points weaker at 1,843.40.In the broader market, there were 763 losers against 234 gainers while 351 counters unchanged. About 2.59 billion shares, valued at RM3.08bil, changed hands.Dealers said the weak earnings results and dampened investor sentiment sparked a broad-based selldown in equity.Adding to the downbeat note, regional sentiment was weak following US President Donald Trump’s remarks that he was not happy with the current progress in resolving the US-China trade conflict.At Bursa Malaysia, the top losers was Dutch Lady that plunged 96 sen, or 1.37% to RM69.02, Panasonic Manufacturing shed 68 sen to RM38.94 while Ajinomoto closed 64 sen lower at RM22.90. The gainers included DRB-Hicom , Hong Leong Industries and KLCC.Axiata, which tumbled 12.62%, or 64 sen to RM4.43, dragged the index down by 10.377 points. CIMB shed 43 sen to RM6.22 and Tenaga lost 40 sen to RM14.94.On the external front, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3%.Japan’s Nikkei tumbled 1.2% to 22,690, after sliding to 22,650 earlier, the weakest intraday level since May 11.Hong Kong stocks posted their biggest intraday fall in seven weeks on Wednesday, pulled down by energy shares which slumped after Beijing intervened to cool the red-hot coal market.The Hang Seng index ended down 1.8% at 30,665.64, while the China Enterprises Index closed 2.1% lower at 12,090.79 points.

Source:The Star

May 23, 2018 09:11 UTC

Axiata sees technical impairment from Idea-Vodafone merger - Business News

KUALA LUMPUR: Axiata Group Bhd is looking at a possible technical impairment of between RM2bil and RM3bil when the merger between its associate Idea Cellular and Vodafone takes places.President and group CEO Tan Sri Jamaludin Ibrahim said the merger of the two telcos is likely to take place in the next quarter, with two approvals still pending.Speaking during a press conference on Wednesday, he stressed that the group was not concerned about this as the impairment was non-cash and would not have an impact on its normalised earnings and dividend-paying ability.Idea is currently an affiliate of the group and the dilution post merger will make it a simple investment.The group had announced its first quarter results yesterday, recording a net loss of RM147.4mil, down from a net profit of RM239mil a year ago, mainly attributed to losses on dilution of the group’s investment in India.The group’s revenue for the period ended March 31, 2018, also decreased by 2.3% to RM5.75bil due to unfavourable forex translation arising from the stronger ringgit, compared with the same quarter last year (1Q17), from all its major operating companies except for the Malaysian mobile operating entity.On the group’s outlook for the year ahead, Jamaludin said they were cautiously optimistic.“Due to the technical impairment, and if the ringgit is still strong, it will be tough.“We are cautiously optimistic. We are still doing well in most of our companies,” he said.

Source:The Star

May 23, 2018 07:52 UTC

DBE Gurney eyes profitability in two years - Business News

KUALA LUMPUR: DBE Gurney Resources Bhd expects to return to profitability in one to two years as the integrated poultry company ramps up its quick service restaurant operating under the HARUMi fried chicken brand.Group Managing Director Datuk Alex Ding Seng Huat said with HARUMi, the company’s profit margin would easily be threefold compared with its traditional business of selling processed chicken and live chicken to wet markets.“If we open up more HARUMi restaurants or kiosks, I believe this will result in a good turnaround for DBE Gurney in one or two years,” he told a press conference after signing a joint-venture agreement with Thailand’s Farmmesh Foods Co Ltd here today.HARUMi, created by DBE Gurney with Taiwanese expertise, is Malaysia’s Halal-certified local fried chicken brand, with the first outlet set up in Sitiawan, Perak in 2016 and to date, there are 220 HARUMi kiosks, five food trucks and eight HARUMi restaurant and signature outlets.By 2020, DBE Gurney targets to have 3,000 kiosks, 300 food trucks and 30 restaurant and signature outlets for HARUMi.On overseas expansion, Ding said the group had incorporated an international office for HARUMi in Taiwan and has targetted to have 50 restaurants across China, Taiwan, Indonesia and Thailand by 2020.Its wholly-owned subsidiary, DBE Poultry Sdn Bhd today entered into a joint venture with Farmmesh Foods, which would see the establishment of a private limited company called Super Harumi Thailand, in which DBE Poultry would hold 30% and Farmmesh 70% equity, respectively.“Our role is to provide consultation and training with regards to the setting up and launch of HARUMi business in Thailand while Farmmesh will take charge of the advertising and promotion initiatives, as well as, secure the critical supply chain of raw materials required.“We plan to open two HARUMi outlets in Thailand this year and we have set aside RM500,000 in capital expenditure for each outlet,” he added.For the 2017 financial year, DBE Gurney recorded a net loss of RM20.31mil compared with a net profit of RM250,000 in the 2016 financial year, on the back of a lower revenue of RM111.73mil versus RM112.98mil, previously.

Source:The Star

May 23, 2018 07:41 UTC

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