PETALING JAYA: With many companies meeting analysts’ expectations in the current financial reporting season, among the notable results came from EON Capital Bhd, MBM Resources Bhd and CCM Duopharma Biotech Bhd.
EON Cap’s second quarter net profit of RM76.5mil on revenue of RM586.5mil was in line with Mayban Securities Malaysia Equity Research’s expectations.
“EON Cap’s overall asset quality is still intact with a net non-performing loan ratio of 4.8%, improving from 5% in the preceding quarter,†Mayban Securities said in its report.
Non-interest income in the second quarter was also boosted by trading gains of securities, the research outfit commented.
“We understand that the lumpy trading gains in securities was partly due to the sale of Jimah bonds.
“Surprise on the upside is a possibility, given that the bond market has started to recover from the three pauses of interest rate hikes,†the report said.
Mayban Securities maintains its forecasts on the finance and banking group.
MBM’s second quarter net profit of RM28mil on revenue of RM317.4mil came in above OSK Research’s expectations.
The results on an annualised basis at RM99.9mil was 15% higher than forecast and 18% higher than consensus expectations, as demand for Perodua cars and Daihatsu trucks remained healthy, the research house said in its results review.
The company’s first half net profit rose risen sharply, on the back of strong Perodua Myvi sales, said OSK’s report.
Net profit rose by 98.4% for the first six months of the year to RM47mil from RM24.9mil in corresponding period last year.
“For the first half of 2006, Perodua managed to sell about 80,000 units versus 65,000 in the first half of 2005, or up 23.1%,†OSK said in the report.
The research house expects Perodua to remain the market leader predominantly from the success of the Myvi.
In addition, MBM was also strong in the commercial vehicles market through Daihatsu Malaysia and Hino Malaysia, it said.
Daihatsu currently dominates the light truck market with about 42% share.
CCM Duopharma’s results announced last Wednesday came largely in line with the expectations of K&N Kenanga Retail Research.
The company reported a 36.8% growth in second quarter net profit to RM7.7mil from RM5.7mil a year ago, and 3.8% growth in turnover to RM27.5mil from RM26.5mil.
Driven by a better product mix, gross profit margin increased to 53.9% from 50.8% while operating margins increased to 38.1% from 34.9%, the research outfit said in its results update.
The research house was maintaining its forecast on CCM Duopharma for the financial year 2006.
The planned increase in public health services expenditure under the Ninth Malaysia Plan from RM1.3bil to RM3.3bil was expected to be a boon for CCM Duopharma, said the report.
“Additionally, CCM Duopharma has already made known its intention to grow its pharmaceutical division to be the principal revenue earner for the group,†K&N said.
