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What Happened This Week

The Serba Dinamik drama continues. Yinson venturing into Chile. Astro got Netflix onboard. Pekat Group almost 3x on its first day. Celcom and Digi merger successfully concluded. Singapore GIC took a stake in Sunway Medical Centre, valuing the business at RM 4.7 billion. World Bank downgraded Malaysia’s GDP growth rate in 2021 from 6% to 4.5%. The entire Malaysia stock market is generally down for the week. Here are some of the major moves this week.

Serba Dinamik (5279) is now down 74%, since the first announcement on the audit flag on 25 May 2021. It was down 34% this week.

Pekat (0233) had a huge pop on its first days of trading, and the simmered down by 18%, settling the week up 137% from its IPO price. A thicc Pikachu indeed.

K Seng Seng (5192) entered the year-to-date top gainer list, and was up 36% this week. Bursa issued the company an Unusual Market Activity (UMA) query. Management said they are in compliance with Bursa rules and noted that the financial performance of the company has been improving and as announced on 25 May 2021 the company recorded a PAT of RM1.528 million for the quarter ended 31 March 2021 compared to a loss of RM0.546 million in the corresponding period in 31 March 2020. The stainless steel manufacturer now has a market cap of RM 161 million.

Edaran (5036) failed its pump during a somber week, and was down 37% this week.

Bursa Malaysia KLCI ended the week lower by 1.8%. Small cap closed the week even lower by 3.4%.

All sectors were down. Energy, Healthcare, and Technology ws the worst performing sectors.

This Week Top 25 Most Active Stocks

By Volume

By Value

This Week Top 10 Short Trades Value

Year-to-date (YTD) Top 25 Gainers

Year-to-date (YTD) Top 25 Losers

This Week Earnings Results Released

42 companies announced their latest quarter results.

Comfort Gloves (2127) announced its Q1FY2022 results. Comparing against Q1FY2021, revenue was up 254%, profit was up 1,241%. Cumulative Free Cash Flow was up 551%. Comparing against the immediate preceding quarter, revenue was up 70%, profit was up 59%. The better results was due to higher sales volume and average selling price.

The company commissioned four double formers dipping lines completely in this quarter and plan to commission additional seven double formers dipping lines which expected to be completed towards the end of financial year ended 31st January 2022. With all the completed production facility, Comfort will be capable of producing up to 8.6 billion gloves per annum. Management see it having better competitive advantage by producing natural and synthetic premium specialty gloves. Its machine lines are designed in such a way that it can produce both latex and nitrile gloves, regardless of specialty or medical gloves, allowing for interchangeability base upon demand dynamics.

JHM (0127) announced its Q1FY2022 results. Comparing against Q1FY2021, revenue was up 50%, profit was up 70%. Cumulative Free Cash Flow was up 189%. Comparing against the immediate preceding quarter, revenue was down 4%, profit was up 12%. The slight declined in revenue was mainly due to cyclical adjustments in the automotive segment.

Management’s outlook remains resilient and is continuing with the business expansion plans to support new customers from automotive as well as industrial segments. The recent announcement on the joint venture with Skywooo Manufacturing Sdn Bhd has enabled JHM to expand its automotive market shares in Malaysia as well as ASEAN region. The joint venture is also capitalising on the capability of JHM in supplying automotive parts in addition to LED lighting. Management believes that the Group’s prospects in the current financial year ending 31 December 2021 remains positive.

Astro (6399) announced its Q1FY2022 results. Comparing against Q1FY2021, revenue was up 1%, profit was up 91%. Cumulative Free Cash Flow was down 35%. Comparing against the immediate preceding quarter, revenue was down 4%, profit was down 16%. The poorer results were mainly due to a decrease in subscription and advertising revenue, offset by an increase in merchandise sales.

Management continue to revitalise its brand and transform the company to be Malaysia’s #1 aggregator of the best streaming services, enhancing local content by producing more premium Astro Originals, seizing opportunities for adjacencies in commerce, broadband and digital, and realisation of its reimagined business models and technology with the evolving ecosystem. Its vision is to be Malaysia’s #1 Entertainment Destination across all screens for everyone, whether individuals, homes or enterprises.

Scientex (4731) announced its Q3FY2021 results. Comparing against Q3FY2020, revenue was up 26%, profit was up 58%. Cumulative Free Cash Flow was up 5%. Comparing against the immediate preceding quarter, revenue was up 7%, profit was down 2%. The increase in revenue was mainly due to higher export sales in the packaging division.

For its packaging segment, Management will continue to strengthen and enhance its operational efficiencies, manage rising production and logistics costs, expand capacity in areas of competitive strengths with continued focus on developing innovative, sustainable and value added products with local and international brand owners.

On the property front, the company completed the acquisition of 161.6 acres of development lands in Sungai Petani, Kedah and 157.8 acres of prime lands in the vicinity of Jasin town, Melaka. It expects to launch its developments in these lands in the coming financial year 2022 to meet the robust demand for affordable housing in these localities. In addition, it has todate committed to purchase additional development lands in Pulai and Tebrau, Johor and in Seberang Perai Utara, Penang. Manangement remains focused on the affordable housing segment by leveraging on cost controls and efficient land use to maximise returns whilst ensuring cost competitive products continue to go on-stream. It will also continue to seize opportunities to acquire more competitively priced landbanks at suitable locations within Peninsular Malaysia to expand its affordable housing brand name to these locations. With the FMCO, it foresees that there could be potential delays in obtaining permits and approvals from the relevant authorities as well as delays in constructional activities, hence impacting our progress billings for the coming quarter.

Yinson (0000) announced its Q1FY2022 results. Comparing against Q1FY2021, revenue was up 188%, profit was up 138%. Cumulative Free Cash Flow remained negative. Comparing against the immediate preceding quarter, revenue was down 20%, profit was up 42%. The lower revenue was mainly due to lower revenue recognised in EPCIC business activities, i.e. the FPSO Anna Nery conversion. Profits was higher due to more FPSO activities, improved contribution margin attributable to FPSO Abigail-Joseph, favourable forex, and decrease in share of loss in joint ventures of RM25 million.

Management sees the long-term outlook for the oil and gas industry remains challenging due to the emergence of new alternative energy sources and the changing appetite of financial institutions towards the industry. Management is cautiously confident in its ability to stay resilient through the challenges with existing order books and continued positive performance in project execution and operations.

This Week Key Economic Data Releases

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Next Week Key Economic Data Releases

Monday - Malaysia May 2021 External Trade Statistics

Wednesday - Malaysia May 2021 Producer Price Index for local production

Friday - Malaysia May 2021 External Trade Indices

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