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Sino Hua-An International Bhd returned to the black in the second quarter ended June 30, 2010, posting a pre-tax profit of RM4.844 million against a pre-tax loss of RM13.279 million in the corresponding period last year.

The return to profitability was after two consecutive quarters in the red, and is due to the continuing recovering trend in the coking and steel industry, albeit a gradual one.

In a filing with Bursa Malaysia Securities, Sino Hua-An said its revenue rose to RM342.506 million from RM301.760 million due to the favourable upward trend in the pricing of metallurgical coke and majority of the by-products in the current quarter experienced by the group.

It said the average prices of metallurgical coke, crude benzene, tar oil, coal slime and middlings in the second quarter have increased by approximately 35 per cent, 49 per cent, 34 per cent, 51 per cent, and 14 per cent respectively compared with those of the preceding year’s corresponding quarter.

However, the price of ammonium sulphate has dropped by approximately 16 per cent and the price of coal gas remained fairly constant in the current quarter compared to the same quarter last year, it added.

For the half-year period, its pre-tax profit was RM2.362 million against pre-tax loss of RM36.911 million in the previous corresponding period as revenue rose to RM716.098 million from RM612.711 million.

Sino Hua-An said the group will continue to focus on its core business activity which is the manufacturing and trading of metallurgical coke and its by-products.

Notwithstanding the improved financial performance shown in the current quarter under review, the group continues to tread cautiously in light of the current issues affecting the world economy, it said.

“We anticipate that the steel industry (and that of metallurgical coke) may be faced with a challenging environment moving into the remainder of 2010,” it added.

The group is nevertheless still hopeful of seeing sustainable pricing dynamics both for metallurgical coke and coking coal in 2010 as domestic demand is still expected to be there.

Barring unforeseen circumstances, the group is cautiously optimistic of better financial results for the current year.

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IJM Land Bhd expects to launch new properties with a total gross development value (GDV) of RM1bil to RM1.2bil in the financial year ending March 31 (FY11), said chief executive officer and managing director Datuk Soam Heng Choon.

“With the outlook of the property market looking more positive this year, we expect to launch a list of new properties during this financial year. Since April, we have already launched properties with a GDV of RM500mil.

“Next month, we expect to launch new residential properties with a combined GDV of RM120mil in Sandakan, the Klang Valley and Johor Baru,” he told reporters yesterday after the group’s AGM and EGM.

On the decision not to declare a final dividend to shareholders for FY10 and the payment of only a single-tier dividend of 2% on Aug 18, Soam said the group needed to continue propelling its property projects after chalking higher sales of RM1.6bil during that financial period.

“However, we will do our best to pay dividends although the group does not have the policy on that matter,” he said.

With the property market expected to be quite robust this year and banks still providing competitive interest rates, Soam believes the group’s property sales would continue to be as strong as seen in its first-quarter results, which are scheduled to be announced today.

On a possible hike in the real property gains tax (RPGT) to curb increasing speculative buying, Soam said whatever the decision, the Government needed to be firm on its policy.

“The Government needs to stand firm on its policy or else it would give a bad impression especially to investors,” he said.

Recently there has been speculation that the Government might impose an additional 5% for RPGT, thus decreasing the returns on property sales within the five-year period as it would be subjected to the higher exit gain tax.

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IOI Corp Bhd’s net profit rose 12.3% to RM547mil in the fourth quarter ended June 30 against the corresponding quarter of last year mainly contributed by higher crude palm oil (CPO) prices.

This was despite a marginal decrease in revenue to RM3.06bil for the quarter under review from RM3.12bil previously.

As a result, earnings per share (EPS) for the quarter climbed to 8.57 sen from 8.21 sen a year ago.

According to IOI Corp, its plantation segment posted a 6% increase in operating profit to RM274.5mil for the quarter under review from RM259.3mil a year earlier.

Average crude palm oil prices realised for the quarter was RM2,504 per tonne compared with RM2,455 a year earlier.

Its property segment’s operating profit of RM190.8mil for quarter under review was 28% lower than a year ago due to lower appreciation in the value of investment properties of the group.

Its resource-based manufacturing segment reported a 28% lower operating profit of RM135.7mil for the fourth quarter, mainly due to lower margins from the refinery operations.

“In Q4’10, the net fair value gain recognised was RM21mil compared with RM110.8mil in Q4’09. But after excluding the net fair value gain, the operating profit for Q4’10 would be 9% higher than Q4’09,” said IOI Corp in its filing with Bursa Malaysia yesterday.

For the full year, IOI Corp reported 107% increase in net profit in financial year 2010 ended June 30 (FY10) to RM2.03bil from RM983.5mil in FY09.

The group said the higher profit was mainly due to unrealised translation gain on long-term US dollar denominated borrowings of RM395.8mil (FY09 – unrealised loss of RM315.3mil) and no further impairment loss at the jointly controlled property entity in Singapore during FY10 (FY09 – loss of RM258.6mil).

“The plantation segment reported a 31% decrease in operating profit to RM1.13bil for FY10 compared with RM1.64bil for FY09.

“The lower operating profit was due mainly to lower average CPO prices for FY10 at RM2,372 per tonne compared with RM2,831 per tonne in FY09.

“The resource-based manufacturing segment reported an operating profit of RM568.6mil for FY10, which is 59% higher than FY09.

“The lower profit in FY09 is due mainly to realised foreign exchange losses on derivative contracts and customer defaults on high priced contracts incurred.

“Our property segment’s operating profit of RM602.9mil for FY10 is 29% higher than the RM467.0mil recorded for FY09, mainly due an overall increase in sales,” said the group.

IOI Group also yesterday proposed a second interim single-tier dividend of 100% or 10 sen per ordinary share of 10 sen each which is not taxable in the hands of the shareholders in respect of the financial year ended June 30, 2010.

The ex date for the dividend is Sept 23 and the entitlement date is Sept 27.

According to OSK Research analyst Alvin Tai, IOI Corp’s core earnings for FY10 was slightly better than expected while pre-tax profit was in line with estimates.

IOI Corp FY10 net profit was just below consensus estimates at RM2.048bil.

“Going forward, production of palm oil and prices are expected to be better in the current financial year,” he said.

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