Market Review

Malaysia: The FBM KLCI (-1.0%) snapped a 3-day winning streak as the key index erased all its previous session gains with more than two-thirds of the key index components ended in the red. The lower liners closed mixed, while the Energy sector (+0.3%) was the sole outperformer on the negative broader market.

Global markets: The US stockmarkets closed mixed as the Dow (+0.01%) inched mildly higher after recovering all its intraday losses, boosted by the strong consumer confidence data that rose to a 14-month high at 121.7 in April 2021, but the S&P 500 and Nasdaq shed 0.02% and 0.3%, respectively. European stockmarkets retreated, while Asia stockmarkets closed mostly lower.

The Day Ahead

The FBM KLCI staged a pullback partly dragged by profit taking activities in glove heavyweights following the recent rebound. We expect investors to remain on tenterhooks and focus on sectors with high earning certainties with the interstate travel ban remaining in force while stricter Covid-19 curbs were implemented in more parts of the country. Commodities wise, the CPO price has seen a surge on the back of gains in soybean oil, while Brent oil price has seen a mild spike. Meanwhile, a 10-year O&G services blueprint was launched to push export and R&D.

Sector focus: We opine that investors may focus on the technology and semiconductor sectors following the remarkable results released yesterday. Besides, investors may put plantation counters on radar given the surge in CPO price. Some trading interest may be noticed in oil & gas counters following the launch of the 10-year O&G services blueprint.

The FBM KLCI wiped out previous sessions gains as the key index failed to maintain above the 1,615 resistance level. Technical indicators turned mixed as the MACD Histogram has turned into a red bar, while the RSI was hovering above the 50 level. The resistance level is pegged along 1,615-1,635, while the support is set around 1,600, followed by 1,565.

Company Brief

Globetronics Technology Bhd’s 1QFY21 net profit rose 14.8% YoY to RM12.5m, on improved sales and better margins. Revenue for the quarter gained 2.6% YoY to RM55.4m. An interim dividend of 3 sen a share was announced. (The Star)

Unisem (M) Bhd’s 1QFY21 net profit stood at RM45.4m vs. a net loss of RM2.8m recorded in the previous corresponding quarter, due to higher sales volume. Revenue for the quarter added 46.6% YoY to RM373.9m. (The Star)

Bursa Malaysia Bhd’s 1QFY21 net profit jumped 88.6% YoY to RM121.4m, largely supported by higher trading revenue in the securities and Islamic market segments. Revenue for the quarter climbed 54.1% YoY to RM232.3m. (The Edge)

Tasco Bhd’s 4QFY21 net profit stood at RM16.3m vs. a net loss of RM0.4m recorded in the previous corresponding quarter, driven by Covid-19 pandemic induced spike in shipping rates. Revenue for the quarter gained 58.9% YoY to RM295.9m. (The Edge)

Frontken Corp Bhd’s 1QFY21 net profit climbed 34.7% YoY to RM22.9m, on improved revenue and better profit margin. Revenue for the quarter grew 22.0% YoY to RM103.5m. (The Edge)

Sapura Energy Bhd’s 4QFY21 net loss narrowed to RM216.0m vs. a net loss of RM4.23bn recorded in the previous corresponding quarter that incurred over RM3.00bn in impairments. Revenue for the quarter rose 29.8% YoY to RM1.44bn. Meanwhile, Sapura Energy’s wholly-owned subsidiaries in engineering and construction have been awarded six contracts with a combined value of approximately RM1.00bn. (The Edge)

Nestle (Malaysia) Bhd's 1QFY21 net profit fell 6.0% YoY to RM175.2m, underpinned by lower out-of-home sales activities due to the Covid-19 pandemic. Revenue for the quarter, however, rose marginally by 1.4% YoY to RM1.45bn. (The Edge)

Westports Holdings Bhd is expecting a single-digit container throughput growth level for FY21. The group also adopted a prudent approach of temporarily trimming the pay-out ratio to 60.0% to conserve cash in FY20, which it will revert to a pay-out ratio of 75.0% in the current year. (The Edge)

RGT Bhd's 3QFY21 net profit surged 396.7% YoY to RM3.0m, on the back of strong increase in demand for hygiene care products such as sanitisers and soap dispensers. Revenue for the quarter jumped 110.3% YoY to RM32.3m. (The Edge)

Atrium Real Estate Investment Trust’s (Atrium REIT) 1QFY21 net property income (NPI) increased 18.7% YoY to RM9.1m, boosted by the addition of rental income from its Atrium Bayan Lepas 1 property in Penang, which commenced operations in October 2020. Revenue for the quarter increased 16.9% YoY to RM9.7m. It is proposing a distribution per unit of 2.5 sen. (The Edge)

Seacera Group Bhd has bagged a contract to supply personal protective equipment (PPE) and hand sanitisers to 145 Bank Islam Malaysia Bhd (BIMB) outlets. The group, however, did not disclose any value for the contract as the purchase order will be issued as and when the products are required by the outlets over a two-year period. (The Edge)

SHH Resources Holdings Bhd is implementing a seven-day stoppage at its subsidiary's manufacturing facilities in Muar from yesterday, after an employee tested positive for Covid-19. SHH expects a delay in shipment of several sales orders to some of its customers, and is discussing with the affected customers for an extension of time to deliver the items, but it does not expect any material impact on its financial performance other than the costs incurred for the disinfection process, swab test and daily meal allowances to workers. (The Edge)

Bintai Kinden Corp Bhd's subsidiary Bintai Healthcare Sdn Bhd has received the Certificate of Conformity in Good Distribution Practice for Medical Devices from Medivice Certification Sdn Bhd for its Greenie Medi Cold Chain Box, which is designed to store and distribute Covid-19 vaccines. The certification will allow it to act as a local authorised representative, as well as to import, store, handle, distribute, warehouse and document medical devices, specifically the hospital hardware and reusable devices. (The Edge)

Inta Bina Group Bhd is planning to issue 147.2m free warrants to shareholders. It will be issuing the warrants on the basis of one warrant for every four existing ordinary shares held, at an entitlement date to be disclosed later. (The Edge)

Source: Mplus Research - 28 Apr 2021