MY Morning Wrap | S P Setia's Net Profit Soars by 71% in Q4, Surpassing Annual Sales Targets

The $Nasdaq Composite Index(.IXIC.US)$ and $S&P 500 Index(.SPX.US)$ reached all-time closing highs on Thursday following the release of a key inflation reading that came in as expected. The PCE, which is the Federal Reserve's preferred inflation gauge, rose 0.3% in January from December, or about 2.8% year over year, in line with economists' expectations. Additionally, the $Dow Jones Industrial Average(.DJI.US)$ and S&P 500 were on track to post their biggest first two-month gains since before the pandemic, with the markets looking to close out February with their best start to the year since 2019. The tech-focused Nasdaq Composite Index climbed 0.12%, while the S&P 500 Index climbed 0.52%, and the Dow Jones Industrial Average climbed 0.12%.

$CIMB(1023.MY)$: CIMB Group Holdings Bhd has reported a nearly 30% year-on-year increase in net profit for the fourth quarter of 2023, thanks to higher operating income and lower provisions. The net profit for the three months ended Dec 31, 2023 (4QFY2023) was RM1.72 billion compared to RM1.32 billion in the previous year's corresponding quarter. The group also recommended a second interim dividend of 18.5 sen per share and a special dividend of seven sen per share for the quarter under review, bringing the total dividend declared for FY2023 to a record high of 43 sen per share, up from the previous year's 26 sen per share. For the full year, CIMB Group's net profit climbed 28.3% to RM6.98 billion from RM5.44 billion a year ago. While net interest income marginally decreased by 3.5% to RM14.63 billion, non-interest income surged 36.5% to RM6.39 billion from investment and market-related income.

$SPSETIA(8664.MY)$: S P Setia Bhd has reported a 71.12% year-on-year increase in net profit for the fourth quarter of 2023, thanks to higher sales of its properties. The net profit for the quarter ended Dec 31, 2023 (4QFY2023) was RM148.24 million compared to RM86.63 million a year earlier. However, revenue for 4QFY2023 fell 18.98% year-on-year to RM1.38 billion from RM1.71 billion, which the group attributed to lower revenue from the property development segment following the completion of the Daintree Residence in Singapore the previous year. S P Setia highlighted that it achieved RM5.1 billion sales in FY2023, exceeding its target of RM4.2 billion and surpassing the RM4.11 billion sales in FY2022. For the full year, net profit slipped marginally by 1.92% to RM298.57 million from RM304.4 million in FY2023, as revenue fell 1.81% to RM4.37 billion from RM4.54 billion. The group declared a dividend of 1.34 sen per share for FY2023.

$AIRPORT(5014.MY)$: Malaysia Airports Holdings Bhd (MAHB) has reported a 188% surge in net profit for the financial year ended Dec 31, 2023 (FY2023) to RM543.17 million or 29.17 sen per share from RM187.19 million or 7.82 sen per share, thanks to an increase in revenue, other income and share of profit from associates and joint ventures. The airports operator reported revenue for the year jumped to RM4.91 billion from RM3.13 billion. However, net profit for the fourth quarter dropped to RM287.69 million from RM359.14 million, despite higher revenue of RM1.37 billion versus RM1 billion previously. MAHB declared a final dividend of 10.8 sen per share in respect of FY2023.

$GENTING(3182.MY)$: Genting Bhd has returned to profitability in the financial year ended Dec 31, 2023 (FY2023), after three years of losses, on the back of higher revenue driven by its leisure and hospitality division. The company posted an annual net profit of RM929.2 million against a net loss of RM299.91 million in FY2022, while annual revenue expanded 21.15% to RM27.12 billion from RM22.39 billion a year ago. In the fourth financial quarter ended Dec 31, 2023 (4QFY2023), Genting posted a net profit of RM150.1 million, down 71.2% from the preceding quarter but a significant improvement from a net loss of RM168.72 million a year ago. Earnings per share stood at 6.82 sen compared to a loss per share of 3.41 sen in 4QFY2022. Quarterly revenue grew 14.2% to RM7.27 billion from RM6.36 billion last year. Genting has declared a final dividend of nine sen per share, bringing the total dividends declared for FY2023 to 15 sen per share, down from 16 sen per share in FY2022.

$CAPITALA(5099.MY)$: Capital A Bhd has reported a net loss for the final quarter of 2023, due to higher operating expenses, asset depreciation and higher financing costs. The net loss for the three months ended Dec 31, 2023 was RM159.57 million, compared to a net profit of RM109.95 million over the same period a year prior. However, revenue more than doubled year-on-year to RM4.86 billion from RM2.2 billion, thanks to a strong recovery of both domestic and international travel demand. Capital A returned to profitability for the full year, after four consecutive years of net losses, with a net profit of RM836.99 million in FY2023, versus a net loss of RM2.63 billion in FY2022. Revenue for the full year more than doubled to RM14.77 billion from RM6.44 billion a year earlier.

$MRCB(1651.MY)$: Malaysian Resources Corp Bhd (MRCB) has reported a significant jump in net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023), to RM80.23 million from RM13.02 million a year earlier, as gains from the disposal of two properties offset a decline in revenue. Revenue fell nearly 20% to RM668.78 million from RM833.94 million previously, following the completion of major infrastructure and property development projects. For the full FY2023, net profit rose 56% to RM101.03 million from RM64.85 million a year earlier, while revenue was 22% lower at RM2.51 billion versus RM3.21 billion. MRCB declared a first and final dividend of one sen per share for a total payout of RM44.7 million, payable on May 20.

$AFFIN(5185.MY)$: Affin Bank Bhd has reported a more than doubling of net profit for the fourth quarter ended Dec 31, 2023, thanks to a sharp decline in provisions and lower taxes. However, the company missed some of its own targets for 2023, with profit-before-tax, net interest margin and cost-to-income ratio coming in lower than expected. Net profit for the three months ended Dec 31, 2023 stood at RM39.54 million, compared to RM16.56 million over the same period a year earlier. Net interest income fell 24% year-on-year to RM177.27 million while non-interest income was a tad lower at RM62.22 million. Allowances for credit impairment losses fell to RM11.1 million from over RM170 million. For the full year of 2023, net profit was down 66% to RM402.19 million from RM1.18 billion, largely due to lower dividends from subsidiaries. The company booked RM1.3 billion in dividends from the divestment of its asset management arm. Affin proposed a dividend of 5.76 sen per share for FY2023, presenting a total dividend payout of RM135.3 million or 33.6% of net profit for the year.

$IHH(5225.MY)$: IHH Healthcare Bhd has reported a more than tripled net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023), driven by higher patient volumes and improved case mix, coupled with the absence of over RM300 million of impairment loss on its China assets and goodwill amid Covid-19 restrictions that it booked in 4QFY2022. Net profit rose to RM727.45 million or 8.26 sen per share for 4QFY2023, from RM191.27 million or 2.17 sen per share a year ago. Revenue for 4QFY2023 grew 9% to RM5.29 billion from RM4.86 billion a year ago. The group declared a final dividend of 5.5 sen, with an ex-date on March 26 this year. For the full FY2023, IHH's net profit rose 91% to RM2.95 billion from RM1.55 billion in FY2022, while revenue grew 16% to RM20.93 billion from RM17.99 billion.