MQ Market Updates - 16 January 2024

MQ Trader

Publish date: Tue, 16 Jan 2024, 05:11 PM

MSM Malaysia Holdings Bhd is planning to increase the utilisation rate of its Johor refinery to 50 per cent by the end of this year. Group chief operating officer Hasni Ahmad said the current utilisation rate of MSM Sugar Refinery (Johor) Sdn Bhd is around 40 per cent. He added that the plan is to increase the utilisation rate for Johor every year, aligning with market demands. (NST)

ACE Market-bound freight forwarding and aerospace logistics provider AGX Bhd has set its initial public offering (IPO) price at 35 sen per share, and remains confident of logistics service industry outlook in 2024 amid rising geopolitical tensions as it intends to adopt a cost-plus pricing strategy. Its IPO price of 35 sen per share would translate to a market capitalisation of RM151.5 million upon the company's listing on Bursa Securities with an enlarged share capital of 432.87 million shares. At its IPO price, the group is valued at about 11 times its price-earnings ratio based on a net profit of RM13.54 million for FY2022. (TheEdge)

Intra-day short-selling of Sarawak Consolidated Industries Bhd (SCIB) shares has been suspended, Bursa Securities said, after the counter fell as much as 22.68% or 27 sen in the morning session. SCIB shares fell to as low as 92 sen, before rebounding slightly to 98.5 sen, still down 20.5 sen or 17.23% at the time of writing. Some 150.87 million shares exchanged hands in the two-hour period, more than double its two-month average volume of 57.32 million shares.The counter saw a rally that lasted a little over three months since October 2023, which saw the counter rise as much as 161% in just three months to its Jan 15 peak of RM1.19, its highest since June 2021. (TheEdge)

Tanco Holdings Bhd said the Ministry of Transport has no objections to its subsidiary's proposed development of a smart AI container port in Negeri Sembilan. Tanco said its 79%-owned subsidiary, Midports Holdings Sdn Bhd, was notified of this on Monday by the Malaysia Marine Department (MMD). MMD went on to inform Midports that the department is giving its approval-in-principle to the port project, subject to various technical studies and preliminary conditions that have been set by the transport ministry. (TheEdge)

Kerjaya Prospek Group Bhd's subsidiary Kerjaya Prospek (M) Sdn. Bhd. has been granted a letter of award for a high-rise residential development project in Setapak, valued at RM111.8 million. The contract, which was undertaken on an arm's length basis, was based on commercial terms which are not more favourable than those available to the public, was awarded by Kerjaya Property Sdn. Bhd, a wholly owned subsidiary company of Kerjaya Prospek Property Bhd. It is classified as a recurrent related party transaction. The project involves building a 52-storey structure, including a 42-storey serviced apartment block and an eight-storey elevated car park, among other components. (NST)

Jentayu Sustainables Bhd has appointed its executive director Baevinraj Thiagarajah as the group's new chief executive officer (CEO) with effect from Monday. Baevinraj, 48, succeeds Jeefri Muhamad Yusup, who has retired, after holding the CEO post since 2020. In a bourse filing, Jentayu (formerly known as Ipmuda Bhd) said Jeefri, 58, holds 16.8 million shares or a 4% stake in the company. (TheEdge)

Maybank Investment Bank (Maybank IB) expects Velesto Energy Bhd to post its best quarterly performance in years in the fourth quarter of financial year 2023 (4Q23) on higher utilisation rate. It expects the fourth quarter of 2023 utilisation rate to be high at 89 per cent (with all jackup rigs up and running; 3Q23: 62 per cent) and an average blended development cost rate (DCR) of USD97,500 (3Q23: USD97,000). Maybank IB expects Velesto to post a core net profit of RM 25 million, barring any unforeseen cost swings. This would make it the best quarterly profit since 3Q2023 of financial year 2019. (NST)

Kenanga Investment Bank Bhd (Kenanga IB) is optimistic about QL Resources’s near-term prospects, expecting livestock farming and marine products to continue driving QL’s growth. According to a note on Tuesday, Kenanga stated that QL’s livestock farming segment is likely to maintain momentum, supported by a government subsidy of 10 sen per egg and a price ceiling of 41 to 45 sen for grade A–C eggs. The research house said the subsidy is expected to continue until the first half of 2024, with a potential review in the second half of the year due to anticipated stability in egg supply. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 16 January 2024