MQ Market Updates - 11 December 2023

MQ Trader

Publish date: Mon, 11 Dec 2023, 05:20 PM

Mestron Holdings Bhd (MHB) has transferred its entire issued share capital from the ACE market to the main market of Bursa Malaysia. Bursa Malaysia approved transferring MHB to the main market within the Industrial Products & Services sector via a letter dated December 8, 2023. MHB managing director Por Teong Eng said the transfer marks a significant milestone for the company after its listing on the ACE market on June 18, 2019. (NST)

Westports Holdings Bhd's core net profit for financial years 2024 and 2025 is to be lacklustre at RM737 million and RM716 million, respectively, due to lower revenue from value-added services, higher operating costs and an increase in lease expenses. Affin Hwang Investment Bank (Affin Hwang) said that although the firm is mildly optimistic about the signing of the Third Supplemental Privatisation Agreement (Third SA) with the government and Port Klang Authority and expects the project to be long-term earnings accretive, it believes the project may affect Westports' medium-term earnings. (NST)

MISC Bhd's liquefied natural gas (LNG) outlook remains positive, and the company believes that clients are willing to offer decent rates despite the elevated asset prices. RHB Research noted that MISC's gas segment, which has 31 LNG carriers, two floating storage units (FSU) and six very large ethane carriers (VLEC), is its largest earnings contributor and accounted for 61 per cent of total operating profit in the nine months (9M) of 2023. (NST)

Malaysian Rating Corporation Bhd (MARC) has affirmed its public information sovereign rating of AAA or stable on Malaysia’s credit profit, citing the country’s competitive and diversified economy, persistent current account surplus, prudent monetary policy and deep capital market. “The stable outlook reflects our expectation that continuity of economic policies will maintain gross domestic product (GDP) growth momentum, while helping to address fiscal efficiency, the high level of subsidies and government debt levels,” said the rating agency in a statement. (TheEdge)

Research firms are maintaining a 'buy' recommendation on YTL Power International Bhd (YTL Power) following the company's new collaboration with Nvidia. RHB Research holds a positive view of the collaboration as the two companies are set to work on developing an artificial intelligence (AI) project to explore new income sources, adding that the project may also boost YTL Power's data centre take-up rate in Johor. (NST)

RHB Research is optimistic about UEM Sunrise Bhd's (UEMS) competitive position in the property development sector, citing its substantial landbank as a primary contributing factor. The bank-backed research firm highlighted that UEMS's extensive land holdings offer flexibility, allowing the company to allocate parcels for targeted developments, including industrial projects, should favourable opportunities arise. (NST)

Independent advisor Malacca Securities said the takeover offer price of RM1.55 for Boustead Plantation Bhd (BPlant) by Lembaga Tabung Angkatan Tentera (LTAT) is “not fair” but “reasonable” and recommended that shareholders accept the offer. Malacca Securities said while the offer price represents a deep discount of RM1.05 or 40.4% to the planter’s real net asset value (RNAV) of RM2.60, it also gives an exit opportunity to investors. (TheEdge)

Hong Leong Investment Bank (HLIB) Research has maintained its “buy” call on Ancom Nylex Bhd, a manufacturer and seller of chemical products, and a target price of RM1.65 based on 17.5 times forecast financial year 2024 (FY2024F) of earnings per share. In a research note on Monday, HLIB Research highlighted that it likes Ancom Nylex for its niche of being the sole large-scale producer of active ingredients for herbicides in Southeast Asia, as well as its strong earnings growth potential, driven by a pipeline of new active ingredients to be rolled out. (TheEdge)

Source: New Straits Times, The Edge Markets 11 December 2023