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What Happened This Week

Earnings season kicks off. Bitcoin broke USD50k and hit USD 1 trillion market cap. Relaxation of MCO rules. Malaysia government unveiled digitization and connectivity investment plans with the Malaysia Digital Economy Blueprint. A few names to note that have seen upward movement in share prices on this.

Dataprep (8338) was up 345% last week, breaking into the YTD Top 25 Gainers at the number 1 spot. The company announced its proposed private placement for RM40million to RM44million, of which RM8million will be used for projects related to 4G and 5G infrastructure including fibre optic network and extra low voltage services, which will be undertaken by its recently acquired 51% subsidiary Ridaa Associates.

Managepay Systems (0156) was up 71% last week. The company provides end-to-end electronic payment solutions for banks and financial institutions, merchants and card issuers with operations in Malaysia.

AwanBiru Technology (5204) was up 28% last week. The company was appointed as a managed service provider to manage cloud services for the government, along with Enfrasys Solutions Sdn Bhd and Cloud Connect Sdn Bhd.

OCK (0172) was up 23% last week. The company is a telco tower leasing company with tower assets across Southeast Asia and provides turnkey telecommunication-network services.

Bursa Malaysia indices ended the week marginally flat. It was a small cap world, as small cap roared ahead of the broader market.

Energy was the best performing sector, on the back of higher oil prices. Telco & Media rise on the back of the multi billion ringgit connectivity announcement on Friday. Most sectors were flattish.

What We Are Watching For Next Week

We watch the whole slew of earnings releases that will come next week, assessing if market expectations reflected in share prices are reflected accordingly in reality/earnings.

Any companies deciding to delay the earnings releases (as allowed by Securities Commission and Bursa Malaysia), will provide an indication to a potentially poorer financial standing quality of the company.

We watch further upside movements in the names catalyzed by the Malaysia Digital Economy Blueprint announcement.

We watch Mobilia (0229) first trading day on Tuesday. The furniture company IPO shares were oversubscribed by 92 times.

We watch key economics data releases (see last section).

This Week Top 25 Most Active Stocks

By Volume

By Value

This Week Top 10 Short Trades Value

Year-to-date (YTD) Top 25 Gainers

Year-to-date (YTD) Top 25 Losers

This Week Earnings Results Released

37 companies announced their latest quarter results. Kossan (7153) announced its Q4 FY2020 results. Comparing to the immediate preceding quarter, revenue was up 26%, profits was up 55%. Similarly, Careplus (0163) announced its Q4 FY2020 results. Comparing to the immediate preceding quarter, revenue was up 5%, profits was down 1%.

Plantations companies announced much higher profitability, despite slower growth in revenue due to better CPO and PK prices. These includes KLK (2445), Sime Darby Plantation (5285), and Sarawak Plantations (5135). Similar results are expected for other plantation companies’ earnings releases next week.

MR D.I.Y. (5296) announced its Q4FY2020 results. Comparing against Q4FY2019, revenue was up 24%, profit was 19%. Cumulative Free Cash Flow was down 8%. Comparing against the immediate preceding quarter, revenue was up 4%, profit was down 8%. Revenue growth was driven by increase in number of store. The lower profit were due to higher listing expenses incurred.

Management remained positive despite the headwinds, expect to open an aggregate of 175 new stores across these three brands in 2021. The MR D.I.Y. flywheel continues to turn and turn.

MISC (3816) announced its Q4FY2020 results. Comparing against Q4FY2019, revenue was up 11%, profit up 125%. Cumulative Free Cash Flow was down 86%. Comparing against the immediate preceding quarter, revenue was up 28%, profit was up 97%. The higher revenue was due to recognition of construction revenue for an FPSO and higher revenue from on-going heavy engineering projects. The profit jump was due to recognition of a one-time gain from a contract extension secured.

Freight Management (7210) announced its Q2FY2021 results. Comparing against Q2FY2020, revenue was up 15%, profit was up 58%. Cumulative Free Cash Flow was down 15%. Comparing against the immediate preceding quarter, revenue was up 15%, profit was up 7%. The better performance as due to higher activities.

Greatec (0208) announced its Q4FY2020 results. Comparing against Q4FY2019, revenue was up 30%, profit was 78%. Cumulative Free Cash Flow was flat. Comparing against the immediate preceding quarter, revenue was flat%, profit was up 29%. The higher profits on the back on flat revenue was due to increase in dividend income, reversal of provisions for employees’ incentive expenses and reversal of revaluation deficit recognised in prior year (accounting plays).

Management has allocated RM77.37 million to invest in a new 230,000 square feet facility in Batu Kawan and facility in US. As of 4 February 2021, its order book stood at RM351.20 million, which is expected to last until first half of 2022. Management remains confident in its ability to continue gaining market share in EV energy storage industry.

Luxchem (5143) announced its Q4FY2020 results. Comparing against Q4FY2019, revenue was up 18%, profit was up 72%. Cumulative Free Cash Flow was down 40%. Comparing against the immediate preceding quarter, revenue was up 15%, profit was up 14%. The better results were due to better performance in both the trading and manufacturing segments.

Next Week Key Economic Data Releases

Wednesday - Malaysia December 2020 Economic Indicators, January 2021 Consumer Price Index (inflation)

Thursday - Malaysia January 2021 Producer Price Index

Friday - Malaysia January 2021 External Trade Indices, Q1 2021 Business Tendency Statistics

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