MQ Market Updates - 09 February 2024

MQ Trader

Publish date: Fri, 09 Feb 2024, 05:24 PM

Tenaga Nasional Bhd's earnings forecast has been trimmed by seven per cent by Affin Hwang Capital following the outage at TNB Janamanjung Sdn Bhd. It also revised TNB's core net profit to RM4 billion for this year, which is 10 per cent below the consensus forecast. This had yet to factor in the outage. TNB Janamanjung's 1,010 megawatt (MW) coal-fired power plant (GF2) has been offline since the beginning of December last year due to unexpected severe fractures in the intermediate pressure steam turbine. The damaged plant components have been sent back to General Electric's facility in Germany for a detailed assessment. (NST)

Reneuco Bhd's share price hit limit down or fell more than 15 per cent in morning trade, after it became a Practice Note (PN) 17 company. Reneuco's share price fell 21.43 per cent to close at 5 sen at midday. At opening of afternoon trade however it was trading at 6 sen. It was the second most actively traded stock, with 77.9 million shares changing hands. The renewable energy company was classified a PN17 company after its external auditor Al Jafree Salihin Kuzaimi PLT said it could not obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the company's unaudited consolidated financial statements for the period ended Sep 30, 2023. (NST)

Bottled water company Spritzer Bhd's unit plans to develop a 2.33 hectare land in Pengkalan Aor, into a housing development. The company yesterday announced that Spritzer Development Sdn Bhd has signed a joint venture agreement with KNP Development Sdn Bhd for the development. Spritzer said, as the land provider, KNP will be entitled to 15 per cent of the sale proceeds of the buildings to be built. Spritzer will pay a non-refundable deposit of RM278,251.20 to KNP once the joint venture agreement is executed, and another RM2.2 million as advance payment to defray some of KNP's expenses. (NST)

Dataprep Holdings Bhd has emerged among Bursa Malaysia’s most active counters during early trade on Friday, following its announcement of a 30-year concession agreement to develop and maintain passive telecommunication infrastructure in Bandung, Indonesia through its local unit. At Friday’s noon break, the counter saw a total of 25.57 million shares changing hands, triple its two-month average trading volume of 7.79 million. Its share price rose as much as three sen or 23, hitting an intra-day high of 16 sen, before paring gains to 14.5 sen, still up 1.5 sen or 11.5%, valuing the group at RM107.01 million. (TheEdge)

Tunku Datuk Yaacob Khyra, the non-executive chairman of KNM Group Bhd, has increased his ownership in the company to 11.75 per cent. This came as a result of MAA Group Bhd acquiring a 2.25 per cent stake in KNM Group Bhd for RM15.04 million, it said in a filing with Bursa Malaysia. Yaacob now owns 11.75 per cent of KNM, which equals to 475.2 million shares. (NST)

Tuju Setia Bhd, a construction group, has appointed Tee Huei Tsyr as its new chief executive officer and Seon Yen Kong as its new chief operating officer (COO). In a statement on Friday, the group said Tee has been with Tuju Setia since 2011, backed by more than 22 years of experience in project and construction management. Tee was previously the group’s COO and currently assists the group’s managing director in overseeing the construction division and pursuing business development opportunities. (TheEdge)

Better progress on existing jobs in KITA@Cybersouth and Idaman projects is expected to drive MGB Holdings Bhd's financial year 2024 (FY24) earnings growth. RHB research said it expects MGB's fourth quarter (Q4) 2023 core earnings to grow year on year (YoY) to RM10-12 million amidst higher progress billings from jobs particularly coupled with conducive labour conditions, and manageable raw material prices. (NST)

Hong Leong Investment Bank Research (HLIB Research) is positive on ITMax System Bhd’s RM47.2mil street lights replacement. ITMAX gained four sen, or 1.97% to RM2.07 with 584,800 shares traded at 10.36 am. The company has recently secured a variation order (VO) from Kuala Lumpur City Hall (DBKL) for the replacement of LED street lights in Kuala Lumpur, for RM47.20mil. (TheStar)

Analysts are revising their projections for Sime Darby Bhd following its takeover of UMW Holdings Bhd, which has been suspended from trading on Bursa Malaysia effective today. Kenanga Research, which maintained its "outperform" recommendation on the share, raised its FY24-25 net profit forecasts on Sime Darby by 2% and 14% respectively, on earnings enhancement from UMW's acquisition. It also upgraded its sum-of-parts target price by 14% to RM2.80 from RM2.45 previously. (TheStar)

RHB Retail Research said PA Resources Bhd is attempting to resume its uptrend after it rose strongly during the intraday session on Thursday, hitting the 35 sen immediate resistance before retreating towards the close. In a trading stocks note on Friday, the research house said that riding beyond the 21-day simple moving average line, if a breakout above the resistance occurs, the stock may climb towards 39.5 sen, followed by the next resistance at 42.5 sen. (TheEdge)

RHB Retail Research said Gabungan AQRS Bhd is set to rebound higher above the 35 sen breakout level on stronger trading volume, following the recent pullback. In a trading stocks note on Friday, the research house said that the bullish bias above that level may see the stock climb towards the 38 sen immediate resistance, followed by its recent high of 39.5 sen. “However, a fall below the 32.5 sen support would signal a reversal towards a downtrend,” it said. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 08 February 2024