In today’s edition of Evening 5 — AAX is no longer in PN17 after Bursa Securities allowed its appeal on the matter. Meanwhile, it was a grim quarter for Star Media Group, the owners of the country’s largest English-language newspaper.
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00:00 [Music]
00:04 Bursa Malaysia has uplifted the Practice Note 17 status on AirAsiaX
00:09 after the airline managed to comply with the criteria for the waiver and upliftment
00:13 from being classified as a PN17 company.
00:17 According to the BORS filing, the group said that the upliftment will come into force
00:21 from the start of trade on Wednesday, November 22, 2023.
00:26 Bursa Malaysia also highlighted that AAX no longer triggers any prescribed criteria
00:30 under paragraph 2.1 of PN17 of the listing requirements.
00:35 Meanwhile, AAX saw its net profit for the third quarter decline by 78% year-on-year to $5.56 million
00:41 compared to $25.09 million in the same period last year
00:45 as a result of higher fuel expenses and maintenance and overhaul costs.
00:49 In contrast, quality revenue surged almost sixfold to $648.4 million
00:54 on the back of recovery in international travel, as well as the increase in available seat capacity.
01:00 On a quarter-on-quarter basis, net profit was fairly flat at $5.54 million
01:04 reported in the second quarter, while revenue improved from $512.9 million.
01:11 As for outlook, AAX says that it expects to maintain the momentum when it comes to fleet recovery.
01:16 It currently operates 14 aircraft out of its 17 aircraft fleet and is expecting to add one more,
01:22 bringing its total fleet size to 18 aircraft.
01:25 Of that, the group expects at least 16 aircraft to be operational by December 2023.
01:31 AAX says that it is keeping to its course by relaunching its key profitable routes
01:36 while maintaining its focus on potentials in China as the country's international travel traffic recovers.
01:42 Aside from that, the airline notes its recent announcement that it will soon service
01:46 Almaty, Kazakhstan, which it calls a "fresh and strategic route" for AAX to expand its reach to other regions of the world.
01:53 Star Media Group's net profit for the third quarter fell 97.5% year-on-year to $56,000
02:04 from $2.2 million a year ago, as earnings were once again affected by high operating costs.
02:10 Quarterly revenue was flat at $54.93 million against $54.43 million reported in the previous year.
02:18 On a quarter-on-quarter basis, the group's net profit was 92.92% lower compared with $791,000
02:26 in the second quarter of FY2023, while revenue fell 5.34% from $58.02 million due to lower revenue
02:34 from the print, digital and events segment and the radio broadcasting segment.
02:39 Moving forward, the publisher of the nation's largest English-language newspaper said it would
02:43 continue with its prudent management strategy while focusing on revenue enhancement initiatives
02:49 and operational efficiency improvements amid global inflation. The group said that as market
02:54 conditions remain challenging, which resulted in contraction of industry revenue, the group
02:59 continues to sustain its revenue and overall financial performance while remaining financially prudent.
03:05 Kajaya Prospect Group's $404.35 million job from BCM Holdings, a subsidiary of EcoFirst Consolidated,
03:17 to build a main residential building has fallen through after BCM decided to not proceed with
03:23 the contract previously agreed upon between both parties. Kajaya Prospect said it will be taking
03:28 necessary steps under the letter of award after advice from its solicitors to enforce its right
03:34 to recover the pre-agreed damages payable stated in the LOA, which is due and payable by BCM to
03:40 its wholly owned subsidiary, Kajaya Prospect Malaysia. At a media briefing, Chairman Datuk T. Eng Ho said
03:46 the group has not mobilized any resources for this contract. When asked whether there was any dispute
03:52 that led to BCM to call an end to the contract, T said he was not in a position to comment as it was
03:58 not related to Kajaya Prospect. Losing the contract reduces Kajaya Prospect's outstanding order book
04:04 from $4.7 billion to about $4.3 billion, while jobs replenishment year-to-date will drop from
04:10 $1.6 billion to about $1.2 billion, which T emphasized is still within management's target
04:15 of $1.2 billion this year. For 2024, T said Kajaya Prospect is eyeing new jobs of about $1.5 billion
04:23 and trying to secure contracts to build data centers. For its third quarter, the group saw
04:28 its net profit improve 24% year-on-year to $35.57 million, mainly due to improved progress of
04:35 construction work activities. Revenue rose 40% from a year ago to $362.2 million as the group
04:42 declared an interim dividend of $0.02 per share.
04:45 Megafirst Corp is increasing its shareholding in the 260-megawatt Don Sahong Hydropower Project
04:56 in Laos from 80% currently to 91.25% through a US$85 million transaction. The deal involves
05:05 Megafirst's 56.25%-owned unit Megaventures buying 20% stake in Don Sahong Power Co. from EDL
05:12 Generation Public Co. for US$85 million. The remaining shareholders in MVL are Laos Inc.,
05:19 Lao Green Power Corp Co. and BVI Inc. Enermax Trading. In a boss filing, Megafirst said the
05:26 proposed acquisition will enable it to increase its shareholding in a proven and profitable
05:31 renewable energy asset. Don Sahong Hydropower Plant commenced operations in January 2020
05:37 and generates approximately 2,028 GWH per year. The project is operating under a 25-year concession,
05:44 whereby electricity generated by the hydropower plant will be sold to Electricité du Laos,
05:50 Laos, under a power purchase agreement. The deal is expected to be completed by end December
05:55 and is not subject to the approval of any regulatory authority and/or shareholders.
05:59 DC Healthcare Holdings is proposing to acquire aesthetic medical clinic operator Ibella for
06:10 $70 million in cash and new shares at $0.58 a piece. The company is proposing to pay $35
06:16 million cash for the acquisition, while the remaining $35 million will be satisfied via
06:20 a total of 60.34 million new shares, representing 5.71% of its enlarged share capital post-exercise.
06:28 Concurrently, DC Healthcare has proposed a 1-for-4 bonus issue of warrants with a five-year
06:34 tenure and exercise price to be determined later. The share's consideration for Ibella's acquisition
06:39 is not entitled to the free warrants, according to DC Healthcare.
06:43 DC Healthcare said it intends to use $15 million of its remaining initial public offering proceeds
06:48 from back in July to partly fund the cash position of the acquisition. Ibella, which has two clinics
06:54 in Sri Petaling and Setia Alam, is currently renovating a clinic in Taman Molit, Johor.
06:59 For its FY2023, Ibella's PAT grew 133% year-on-year to $2.93 million, while revenue grew 32% to
07:07 RM11.85 million. Shares in DC Healthcare have climbed around 25% since its listing
07:13 and ended Tuesday down 1.96% at 50 cent.