MQ Market Updates - 20 November 2023

MQ Trader

Publish date: Mon, 20 Nov 2023, 05:22 PM

Petronas Gas Bhd's (PetGas) net profit rose 10 per cent to RM468.46 million in the third quarter ended Sept 30, 2023 (3Q23) from RM425.82 million a year ago, on the back of lower tax expenses. The group said the corresponding quarter tax expense was higher due to imposition of prosperity tax for year of assessment 2022, according to its filing to Bursa Malaysia today. Revenue for the quarter inched down to RM1.55 billion from RM1.56 billion previously, due to lower revenue from regasification and gas transportation segments. (NST)

CPE Technology Bhd, a provider of engineering supporting services, has priced its initial public offering (IPO) at RM1.07 a share, with plans to raise RM179.58 million. The group manufactures precision-machined parts and components and provision of computer numerical control machining services for different industries, including, semiconductor, life science and medical devices, sport equipment, sensor equipment and security industries in Malaysia and overseas. The company plans to list on the Main Market of Bursa Malaysia Securities Bhd on Dec 7, 2023. CPE Technology plans to issue 167,828,700 new shares under its IPO. (NST)

Mesiniaga Bhd has secured a RM38.1 million contract from the Royal Malaysian Customs for the provision of the MYGST System Maintenance Services and License Renewal from 2023 to 2025. In a filing to Bursa Malaysia today, the company said the total value of the contract is RM38.1 million inclusive of sales and service tax. (NST)

Mestron Holdings Bhd's (MHB) net profit increased 6.89 per cent to RM3.57 million in the third quarter (Q3) ended September 30, 2023 (FY23), bolstered by a decrease in raw material costs such as steel plates and pipes and heightened demand for specialty poles, especially in the telecommunications (telco) sector. The strong performance was even more impressive given the challenging economic conditions due to volatile foreign exchange rates, rising interest rates, and inflation. The net profit surge is also in line with an 11.5 per cent increase in revenue, reaching RM41.44 million in Q3 FY23 compared to RM37.16 million in Q3 FY22. (NST)

UMW Holdings Bhd recorded a strong sales of 44,4767 vehicles in October as both UMW Toyota Motor and its associate company Perodua delivered outstanding orders. Year to date (YTD), UMW Holdings' automotive sales jumped 17 per cent to 354,505 units from the 302,356 units registered in the same period of 2022. UMW Holdings officer-in-charge Megat Shahrul Azmir said YTD, both UMW Toyota and Perodua had continued to register higher sales compared with the same period of 2022. (NST)

Pekat Group Bhd's net profit rose 63.6 per cent to RM3.6 million in the third quarter (Q3) ended Sept 30, 2023 from RM2.2 million a year ago. The company's revenue rose 35.3 per cent to RM62.9 million in Q3 2023 from RM46.5 million last year. This is due to the successful execution of the solar photovoltaic (PV) project for commercial and industrial solar rooftop projects within the quarter. For the nine months, Pekat's net profit rose to RM10.2 million from RM7.7 million a year ago, while its revenue rose to RM169.2 million from RM134.2 million previously. (NST)

Hap Seng Consolidated Bhd's unit, Hap Seng Body and Paint Center (BPC), has been appointed as the application partner for automotive paint products by Ngenco Malaysia Sdn Bhd (NMSB), the automotive paint products distributor of United Kingdom (UK) based Ngenco Ltd. Hap Seng BPC will be the application partner for the Ngenco spray-on paint protection system. This partnership will mark a significant milestone in the automotive industry, as Ngenco's paint protection solutions are set to redefine the standards of vehicle preservation and customisation in Malaysia. (NST)

LBS Bina Group Bhd executive chairman Tan Sri Lim Hock San has been conferred with an honorary doctorate of management by Unitar International University in recognition of his exemplary leadership. He was acknowledged for his role in steering LBS Bina Group Bhd to become one of Malaysia's most trusted property developers. It was also in recognition of his significant contributions to Malaysia-China bilateral relations through key roles in non-governmental organizations. (NST)

Gamuda Land said that the delivery of Maya Bay Residences will be a testament to the township's careful planning, which has resulted in a 95 per cent take-up rate for the residential units and a 100 per cent take-up rate for its retail podium. The developer recently held a topping-off ceremony for Maya Bay, Gamuda Cove's first high-rise residential development. Brandon Yong, general manager of Gamuda Cove, said that the township welcomed the first batch of residents earlier this year with the vacant possession (VP) of its flagship landed residential development. He said that more residents will move to the township, with the VP of Maya Bay scheduled for March 2024. (NST)

Tenaga Nasional Bhd (TNB) is actively seeking collaborations with governments, investors and key stakeholders to drive sustainable development initiatives in the Asean region. The utility giant looks to accelerate a responsible energy transition (ET) while addressing the energy trilemma. To-date, TNB has signed 29 Memorandum of Understandings (MoUs) with local and international partners in various ET fields such as solar parks, integration of hydrogen and ammonia in power plants, interconnection, and electric vehicles. "TNB believes that a collaborative approach, along with supportive policies, technology advancements, and adequate funding, is crucial for a successful ET while addressing the energy trilemma," he said. (NST)

Eurospan Holdings Bhd’s proposed RM54.55 million sale of its furniture manufacturing unit and properties in Seberang Perai to its controlling shareholder for future leaseback has been deemed “fair and reasonable” by independent adviser Mainstreet Advisers Sdn Bhd. Eurospan is disposing of Dynaspan Furniture Sdn Bhd (DFSB) for RM38.9 million cash to its executive chairman and largest shareholder Guan Kok Beng, managing director Guan Shaw Yin and deputy MD Guan Shaw Kee. (TheEdge)

RHB Research has raised the gross development value (GDV) for AME Elite Consortium Bhd's remaining 160 acre in i-TechValley by 10 per cent to RM1.17 billion, on the strength of recently transacted industrial land prices near the project. It said in a note today that the potential addition of new land, especially in Johor, could be a share price catalyst as AME has been anchoring the industrial sector in Iskandar Malaysia. It has a war chest of about RM180 million post listing of AME Real Estate Investment Trust. The research firm has raised its target price for AME to RM2 from RM1.82 previously. (NST)

Bumi Armada Bhd’s outlook for the fourth quarter of 2023 (4Q23) appears brighter, as its floating production, storage and offloading (FPSO) Kraken will be running and most likely achieve 100% utilisation, say analysts. Hong Leong Investment Bank (HLIB) Research said it expects the company to register sequential earnings growth in the coming quarter premised on better quarterly earnings from FPSO Kraken, as well as first oil being achieved in Oil and Natural Gas Corp’s (ONGC) KG-DWN98/2 in the coming weeks. (TheStar)

Sunway Real Estate Investment Trust (Sunway-REIT) will have an improved earnings outlook from financial year 2024 (FY24) onwards, driven by increased footfall at its malls, helped further by the recovery in domestic tourism and inbound tourists. Kenanga Research said as international and domestic visitors return, alongside tenant sales and footfall recovering to pre-pandemic levels, it is likely that business momentum will continue to sustain. (TheStar)

Affin Bank Berhad's net profit of RM362.7 million for the first nine months ended September 30, 2023 (9MFY2023) fell short of Kenanga Investment Bank's expectations, reaching only 68% of the full-year forecast due to an underestimation of the extended compression of net interest margin (NIM) in 3QFY2023. However, the results were within market expectations at 72% of the full-year consensus estimate. According to a note on Monday, Kenanga stated that Affin’s net interest income for 9MFY2023 sank by 17% year-on-year (y-o-y) on continued NIM compression as the group faced higher funding costs from past overnight policy rate hikes. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 20 November 2023