MQ Market Updates - 15 November 2023

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Publish date: Wed, 15 Nov 2023, 05:27 PM

Plytec Holding Bhd made its debut on the ACE Market of Bursa Malaysia at 36 sen, reflecting a 2.86 per cent premium to its initial public offering (IPO) price of 35 sen. The company raised RM37.1 million from the IPO. Of the total amount, RM9 million has been allocated for the repayment of bank borrowings.A total of RM8 million will be utilised for capital expenditure and RM7.8 million has been budgeted for the construction of factories and centralised labour quarters on the Olak Lempit land. (NST)

Tenaga Nasional Bhd (TNB) has inked memorandums of understanding with Huawei Malaysia and RHB Banking Group to accelerate the shift towards sustainable energy. Its agreement with Huawei is to unlock the potential of green energy solutions. TNB president and chief executive officer Datuk Seri Baharin Din said the partnership with Huawei will accelerate its energy transition agenda by leveraging on digital transformation and tapping into new opportunities in green energy solutions. (NST)

NationGate Holdings Bhd saw its net profit and revenue drop by over 40% year-on-year in its third quarter ended Sept 30, 2023 (3QFY2023), amid slower demand for the group’s electronic manufacturing services (EMS), especially from networking and telecommunication customers. Net profit dropped by 42.5% to RM17.28 million or 0.83 sen per share for 3QFY2023, from RM30.05 million or 1.83 sen per share in 3QFY2022, the group disclosed in its stock exchange filing on Tuesday. Revenue fell by 45.7% to RM165.58 million from RM305.17 million. (TheEdge)

HSS Engineers Bhd's wholly-owned subsidiary HSS International Sdn Bhd has entered into a binding heads of agreement with the Engineering and Development Corporation of the Philippines for the incorporation of a joint venture vehicle in the country. In a filing with Bursa Malaysia, the group said the JV company will be incorporated and registered as EDCOP-HSS, which will provide advanced building information modeling (BIM) services and solutions. (TheStar)

The land value of Matrix Concepts Holdings Bhd's (MCH) first joint venture project in Jakarta, which will house the Menara Syariah Twin Towers, is expected to be higher upon completion. The Menara Syariah Twin Towers are located in an area designated as an Islamic Financial District, which forms part of the 23.5-hectare International Financial District in Pantai Indah Kapuk 2 (PIK 2) Waterfront City, Jakarta. (NST)

Maxis Bhd should be able to maintain service revenue resilience going forward, supported by its convergence strategy, particularly with the ongoing focus on mobile and fibre/wireless bundles. Its capital expenditure (capex) is being toned down for financial year 2023 (FY23) to be slightly less than RM1bil versus FY22’s RM1.1bil. (TheStar)

JF Technology Bhd’s wholly-owned subsidiary, JF International Sdn Bhd (JFI) has entered into a joint-venture agreement with HFC Industry HK Ltd (HFCI), a subsidiary of Shenzhen HFC Co Ltd (Shenzhen HFC) to incorporate HFC Tech Sdn Bhd (HFC Tech). In a statement, JF Technology said the joint-venture company’s principal activities include design and manufacture of electromagnetic interference (EMI) shielding materials and , thermal interface materials. (TheStar)

Reservoir Link Energy Bhd (RLEB) is acquiring SAG Renewables Sdn Bhd (SAGR) for RM10.5mil. RLEB said its wholly-owned subsidiary, Reservoir Link Renewable Sdn Bhd, had entered into a share sale agreement with SAG Green Tech Sdn Bhd for the proposed acquisition of one million shares, representing a 100% equity interest in SAGR. The proposed acquisition represents an opportunity for the group to expand its revenue-generating assets, it said in a filing with Bursa Malaysia. (TheStar)

Ibraco Bhd’s latest job award from Sarawak Metro Sdn Bhd is viewed positively as this increases the group’s outstanding construction orderbook and supports earnings growth going forward. Ibraco, part of a consortium that comprises China Railway Engineering Corp Malaysia (CRECM) and Nanyang Tunnel Engineering Sdn Bhd (NYTE), has secured a RM568.6mil construction project for the Kuching Urban Transportation System (KUTS) from Sarawak Metro. (TheStar)

Property developer Crescendo Corp Bhd (CCB) is stepping up its land sales in Pulai, Johor. It plans to sell nine parcels of freehold vacant land in Pulai, measuring 82,496.4 sq m for RM111 million cash, following an announcement a week ago that it would divest seven parcels of adjoining lands, also in Pulai, for RM117.02 million cash. CCB said it is expected to record a consolidated gain after taxation of approximately RM68.33 million from the latest disposal. (TheEdge)

Priceworth International Bhd’s wholly owned subsidiary, Maxland Bina Sdn Bhd, has secured a RM13.84mil contract from Integrated Marine Works Sdn Bhd (IMW). In a filing with Bursa Malaysia, Priceworth said Maxland Bina was appointed by IMW as the sub-contractor for maintenance dredging works at Northport and Southpoint wharves frontage (Wharves 1 to 25) including the marine base at Pulau Indah, Port Klang. (TheStar)

IHH Healthcare Bhd says its unit filed a claim against Japan’s Daiichi Sankyo in mid-October seeking damages in excess of 20 billion yen (RM621.83mil) in relation to its stake buy in India’s Fortis Healthcare. On Oct 16, Northern TK Venture (NTK) filed a claim against the Japanese pharmaceuticals manufacturer stating it caused losses to the company by preventing it from proceeding with open offers to buy a stake in Fortis Healthcare in 2018. (TheStar)

Hong Leong Investment Bank (HLIB Research) has reduced its earnings forecast for Dialogue Group Bhd for the fiscal year 2024 (FY24) by 5.7 per cent due to lower profit margin assumptions for the downstream engineering, procurement, construction, and commissioning (EPCC) business. It noted Dialog's core net profit of RM137.9 million for the first quarter ended September 30, 2023 (FY24) came in slightly below its expectations but within consensus. (NST)

Sime Darby Bhd may stand to make an exceptional gain of RM2 billion from the disposal of its hospital business to a joint venture between billionaire Quek Leng Chan's Hong Leong Group and funds managed by US private equity firm TPG. But analysts pointed out that the RM5.7 billion price tag is not attractive and undervalued. The disposal and exit from the healthcare business, nevertheless, is timely to address concerns about Sime Darby's ballooning gearing level for acquisitions. (NST)

TA Securities has downgraded Ranhill Utilities Bhd to "hold" from "buy", with a higher target price (TP) of 96 sen, after its quarterly results fell short of expectations, citing limiting upside potential following the recent surge in its share price. In a note on Wednesday, the research house said it holds a sanguine outlook, due to the potential increase in domestic water tariffs, expansion in Indonesia via the Djuanda source-to-tap project, and a new 100MW combined cycle gas turbine power plant in Kimanis, Sabah, slated for operations by March 2026. (TheEdge)

TRC Synergy Bhd's unsuccessful bids for the Kuching Urban Transportation System (KUTS) will reduce its current outstanding tenders to an estimated RM3.8 billion. Hong Leong Investment Bank Bhd (HLIB) said TRC had major tenders for Mass Rapid Transit 3 CMC301 package and two packages for KUTS with an estimated value of RM3 billion and RM1.2 billion respectively. (NST)

Source: New Straits Times, The Edge Markets The Star 15 November 2023