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Mplus Market Pulse - 23 Sept 2021

Publish date: Thu, 23 Sep 2021, 10:05 AM
An official blog in I3investor to publish research reports provided by Malacca Securities research team.

All materials published here are prepared by Malacca Securities. For latest offers on Malacca Securities trading products and news, please refer to: https://www.mplusonline.com.my

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Recovery in store

Market Review

Malaysia:. The FBM KLCI (-0.1%) staged a mild pullback after hovering in region for the entire trading session, dragged down by weakness in selected telco and plantation heavyweights. The lower liners, however, rebounded, while the broader market closed finished mostly higher, anchored by the technology sector (+1.3%).

Global markets:. The US stockmarkets advanced as the Dow jumped 1.0% despite US Federal Reserve officials signal for tapering of bond buying program and interest rate hikes in 2022; suggesting that economic recovery is well on track. European stockmarkets extended their gains, while Asia stockmarkets closed mixed.

The Day Ahead

The FBM KLCI ended the day mildly negative as investors mulled the possible imposition of capital tax rate and one-off higher tax rate with windfall profits. On the broader market, shares linked to telecommunications network infrastructure soared on the JENDELA tender news, which was said to be issued within 4 weeks. We opine that the overnight gains on Wall Street, news on cross state travel to be allowed when the adult population vaccination rate reaches 90.0% coupled with government’s decision to move three more state to the next phase of NRP could lift investors’ sentiment.

Sector focus:. As three more states are transitioning into next phase of NRP which signals brighter economic recovery going forward and it should position well for the recovery theme sectors, investors may look out for aviation, tourism, and consumer related stocks. Meanwhile, we expect telco related stocks to extend its rally move today amid the JENDELA tender news. 

FBMKLCI Technical Outlook


The FBM KLCI back into the negative territory amid lacklustre trading. Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI continued hovering below the 50 level. Resistance is located at 1,550- 1,560, while the support is pegged along 1,515.

Company Brief

Opcom Holdings Bhd’s 1QFY22 net profit stood at RM2.6m vs. a net loss of RM0.8m recorded in the previous corresponding quarter, on the back of improved revenue. Revenue for the quarter jumped 192.9% YoY to RM22.9m. (The Star)

Favelle Favco Bhd’s 2QFY22 net profit grew 79.0% YoY to RM13.5m, mainly due to increase in sales. Revenue for the quarter added 57.2% YoY to RM153.1m. (The Star)

Heitech Padu Bhd has secured a contract from the Road Transport Department (RTD) worth RM36.3m. It has signed a letter of award (LoA) to provide RTD with maintenance and technical support for its ICT infrastructure as well as the vehicle and driver information system (mySIKAP). The contract is from 6th September 2021 to 30th September 2022. (The Star)

Sedania Innovator Bhd’s 51.0%-owned health tech subsidiary Offspring Inc Sdn Bhd is expanding into the Middle East, starting with Bahrain. Offspring focuses on early childcare solutions, offering, among others, products such as baby diapers, wet wipes, skincare and home care products that are made of naturally derived, organic, sustainable and biodegradable materials. (The Edge)

IOI Properties Group Bhd's wholly-owned subsidiary Boulevard View Pte Ltd has submitted a S$1.51bn (RM4.68bn) bid to buy an estimated 0.8-ha (7,817.6 sqm) leasehold land known as the White site in Singapore's Marina View enclave under the country's Urban Redevelopment Authority's invitation to tender, which saw Boulevard View become the sole bidder. (The Edge)

Solarvest Holdings Bhd is planning further diversification in the solar energy business. Solarvest is moving aggressively into solar energy investments that are working on as well as leveraging Powervest, which is the all-new solar financing programme that will strengthen its position in the solar energy market. (The Edge)

Rhone Ma Holdings Bhd via its subsidiary A2 Fresh Sdn Bhd, has entered into a joint venture agreement with Kulim (Malaysia) Bhd to develop, operate and manage a potential dairy project. The initial investment required for the project will be up to RM41.4m, which will be funded through equity in the form of subscription of shares by the shareholders in proportion to their shareholding ratio in the special purpose vehicle company. (The Edge)

Glomac Bhd's 1QFY22 net profit fell 60.7% YoY to RM1.7m, impacted by the very difficult operating environment arising from the implementation of Movement Control Order 3.0. Revenue for the quarter slipped 38.5% YoY to RM28.8m. (The Edge)

Vizione Holdings Bhd has entered into an agreement to develop 2,500 affordable apartment units with related infrastructure in Putrajaya. The agreement for the RM500.0m gross development value project was inked between Vizione's wholly owned unit Vizione Builder Sdn Bhd and Pan Sejati Development (M) Sdn Bhd. (The Edge)

Scomi Group Bhd’s wholly-owned Scomi Capital Sdn Bhd has entered into a memorandum of understanding with ODESI eCOB Sdn Bhd to explore opportunities to develop an urban solar programme to sell and purchase electricity generated from solar photovoltaic systems. (The Edge)

CIMB Group Holdings Bhd has committed to a series of strengthened sustainability commitments, including the mobilisation of RM30.0bn towards sustainable finance to be an ASEAN sustainability leader by 2024. CIMB has set a higher sustainability finance target guided by the group's Green, Social, Sustainable Impact Products and Services framework. (The Edge)

Sarawak Consolidated Industries Bhd (SCIB) has announced that its wholly-owned subsidiary SCIB Properties Sdn Bhd has been awarded a RM137.0m contract to build housing for civil servants. The developer of the project, Awana JV Suria Saga Sdn Bhd in Muallim, Perak has nullified Puncak Gemilang Melati Sdn Bhd as the main contractor and appointed SCIB Properties to take over as the main contractor. (The Edge)

TAFI Industries Bhd has entered into five joint-venture agreements to develop mixed housing projects in Pahang with an estimated total gross development value of RM621.5m. For all five projects, TAFI's wholly-owned subsidiary Gerak Mahir Sdn Bhd will be bearing the cost of the development, while the joint venture partners will be providing the project land. (The Edge)

Berjaya Land Bhd's 4QFY21 net loss widened to RM126.3m, from a net loss of RM108.5m recorded in the previous corresponding quarter as the lockdown restrictions impacted its business operation. Revenue for the quarter, however, jumped 128.1% YoY to RM1.24bn. (The Edge)


Source: Mplus Research - 23 Sept 2021

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