Market Review

Malaysia:. The FBM KLCI (+1.1%) advanced for the fourth straight session as political instability took a backseat. Amidst the mostly positive broader market led by the industrial products & services sector (+1.7%), the lower liners, however, closed on a mixed note on signs of profit taking activities.

Global markets:. The US stockmarkets extended their winning streak as the Dow added 0.1% on gains in financial and energy stocks after crude oil prices trended higher for the third straight session. European stockmarkets closed mixed, while Asia stockmarkets finished mostly higher.

The Day Ahead

The FBM KLCI posted another day of gains, supported by foreign buying which saw highest daily net buying of RM236.5m since mid-June amid a calmer political environment. While the key index continues to building on its rebound momentum, note that potential profit taking activities may emerge following recent strong surge. Internationally, investors are waiting for the outcome of the US Fed annual Economic Policy Symposium to gauge the monetary policy outlook which will affect the market sentiment. Commodities wise, both the CPO and crude oil prices climbed significantly overnight.

Sector focus:. Investors may target the plantation sector amid rising CPO price. Besides, the oil & gas counters may shine amid firmer crude oil price hovering above USD72 per barrel level. Meanwhile, traders may look for recovery theme stocks under the construction and building material segments.

The FBM KLCI climbed for the fourth session as the key index closed above the SMA 100 level. Technical indicators remained positive as the MACD Histogram has extended a green bar, while the RSI has crossed above the 70 (overbought). With the key index crossing above the resistance level at 1,565, next resistance is at 1,580, while the support level is located at 1,540.

Company Brief

Sime Darby Bhd’s 4QFY21 net profit rose 19.2% YoY to RM211.0m, underpinned by stellar performance in motor division across most markets. Revenue for the quarter increased 28.6% YoY to RM11.34bn. A second interim dividend of 8.0 sen per share and special dividend of 1.0 sen per share for the quarter, payable on 30th September 2021 was declared. (The Star)

Petronas Chemicals Group Bhd’s 2QFY21 net profit surged 10.0x YoY to RM1.86bn, on the back of a recovery in crude oil prices. Revenue for the quarter expanded 76.5% YoY to RM5.61bn. An interim dividend of 23.0 sen per share, payable on 30th September 2021 was declared. (The Star)

Prestar Resources Bhd’s 2QFY21 net profit stood at RM19.2m vs. a net loss of RM2.9m recorded in the previous corresponding quarter, mainly due to better sales margin resulting from higher demand on the products and services of all business segments. Revenue for the quarter jumped 133.6% YoY to RM124.5m. (The Star)

Heineken Malaysia Bhd’s 2QFY21 net profit of RM25.3m vs. a net loss of RM18.2m recorded in the previous corresponding quarter, on improved sales. Revenue for the quarter gained 37.7% YoY to RM349.4m. An interim dividend of 15.0 sen a share, payable on 18th November 2021 was declared. (The Star)

Green Packet Bhd wholly owned Oasis Capital Investment Bank (OCIB) has been awarded the conditional investment bank licence from the Labuan Financial Services Authority (LFSA) yesterday. With the conditional licence, OCIB will begin fulfilling operational conditions such as setting up the required processes and technology platforms in accordance with regulatory requirements. (The Star)

MSM Malaysia Holdings Bhd’s 2QFY21 net profit stood at RM13.3m vs. a net loss of RM19.4m recorded in the previous corresponding quarter, on higher average selling prices for its products. Revenue for the quarter rose 23.5% YoY to RM554.1m. (The Edge)

Malaysia Building Society Bhd’s (MBSB) 2QFY21 net profit surged 536.2% YoY to RM403.4m, amid impairment write-backs. Revenue for the quarter, however, slipped 2.4% YoY to RM664.9m. (The Edge)

Genting Plantations Bhd’s 2QFY21 net profit surged 362.1% YoY to RM104.6m, attributed the improved earnings to higher revenue contributions from its plantations segment, coupled with higher sales from its property segment. Revenue for the quarter rose 45.2% YoY to RM790.1m. An interim dividend of 11.0 sen per share, payable on 24th September 2021 was declared. (The Edge)

Symphony Life Bhd’s largest shareholder, Muar Ban Lee Group Bhd has called for an upcoming extraordinary general meeting scheduled for 23rd September 2021 to vote on the removal of three directors, whom it said it disagrees with on the direction they were taking the company, and to replace them with three others. The meeting was called via MBL's wholly-owned Theron Holdings Sdn Bhd. (The Edge)

Boustead Plantations Bhd’s 2QFY21 net profit soared 583.3% YoY to RM48.4m, on the back of higher palm oil product prices. Revenue for the quarter rose 45.3% YoY to RM242.8m. A second interim dividend of 2.3 sen per share, payable on 30th September 2021 was declared. (The Edge)

Ekovest Bhd is proposing to provide financial assistance amounting to S$77.3m (RM240.3m) to its indirect 29.0%-owned joint venture company MCC Land (TMK) Pte Ltd in the form of deed of undertaking for banking facilities obtained by the latter from licensed financial institutions based in Singapore. The amount is more than 5.0% of Ekovest's net tangible assets for the financial year ended 30th June 2020. (The Edge)

Hap Seng Consolidated Bhd’s 2QFY21 net profit jumped 121.2% YoY to RM97.5m, boosted by the plantation, automotive, trading and building materials divisions. Revenue for the current quarter grew 25.6% YoY to RM1.26bn. (The Edge)

TH Plantations Bhd’s 2QFY21 net profit surged 255.6% YoY to RM26.6m, amid higher average realised prices of crude palm oil, palm kernel and fresh fruit bunch, despite lower sales volume for both crude palm oil and palm kernel. Revenue for the quarter improved 38.1% YoY to RM176.1m. (The Edge)

Source: Mplus Research - 26 Aug 2021