NEXT For IRIS, RGB, PPB

IRIS: Continue to expect an improved performance ahead based on: resumption of works in Tanzania and Republic of Guinea; improved contract flow for Rimbunan Kaseh (RK) and Sentuhan Kasih (SK) projects; completion of upgrading works for waste incineration power plant in Phuket; ramp up of production in its food waste to fertilizer plant in China; and contributions from its Gerehu Heights project.

Overall performance has been led down by losses due to lack of scale in RK and SK projects.

This was attributed to a slow award of projects by both the state government and FELDA.

However it displayed narrowing losses from the segment.

For FY2014, the group has secured a combination of five RK and SK projects. This should contribute positively as it looks to turn around the segment.

Potential gross development value of Gerehu Heights estimated at rm300 million. Positive contributions are expected in financial year 2016.

Also expect a ramp up in production for its food waste to fertilizer plant in China. Now (Feb 2015) incurring losses, it operates at only one third of its capacity.

It had received a permit from the local government to secure waste from other regions in the area. The move will allow the plant to achieve the scale necessary to generate positive contributions.

RGB: It is planning to venture into the business of selling parts –for the electronic gaming machines it manufactures – to its existing clients in order to grow its revenue stream for the financial year ending Dec 31 2015.

It had tied up with a business partner – a company that provides turnkey technical support and parts.

This venture will allow RGB to be a complete solutions provider

It is aiming to grow both its profit and revenue by 5% in FY2015 driven by the sale of 1500 gaming machines, the placement of an additional 500 Bingo machines in the Philippines and its 7000 machine concessions across Asia.

The casinos will need to replace or add to their gaming machines when they undergo a replacement or floor expansion.

It is also planning to expand its footprint in new markets in Asia – both for supplying its gaming machines as well as acquisition minority stakes in clubs which host such machines.

Currently (March 2015) its income is coming from the technical support and management division. Moving forward, it wants to buy equity in clubs which operate these gaming machines. It is looking at a minority stake of 20% to 30% to have another stream of recurring income.

RGB is already in the process of completing the first such acquisition, with its subsidiary RGB acquiring a 30% stake in Timor Holding. Lda. It has currently 90 gaming machines operating there which it is reaping revenue via concession agreements based on a profit sharing scheme with its customer.

Internal generated funds and possibly a corporate exercise will be used for fundraising.

PPB: It expects its revenue growth for FY2015 to be driven by its core segment of flour, feed milling and grains.

The flour, feed milling and grains segment has always been the largest contributor of its core segments.

PPB is the single largest shareholder in Wilmar with an 18.3% stake.

Wilmar contribution to PPB had declined in FY2014 to 67% or rm695 million compared with 72% in FY2013 due to lower CPO prices.

This coupled with lower income from its investment in equities and losses in the packaging business, had impacted PPB’s profit in FY2014.

The environmental and engineering segment is expected to achieve a higher revenue in 2015 as the contracts progress to the construction phase. The group’s current construction order book stands at rm413 million.

It will also be committing rm283 million to expand and upgrade the stable of cinemas under GSC.

For its property division, it is banking its Puteri Harbour project in Nusajaya, Johor with a GDV of rm1.5 billion.