Traders Will Focus On KLCI Semi-Annual Review

Malaysia: The FBMKLCI (+0.07%) snapped its 3-days losing streak to close higher at 1589.78 pts, supported by TENAGA and PCHEM. The Construction (+2.33%) sector gained the most, led by GAMUDA and IJM, while the Utilities (-0.78%) sector experienced the largest decline.

Global markets: The US market ended higher as ‘Trump 2.0” sentiment remains as the key driver of market activity for now. Meanwhile, the European market advanced, while the Asian market ended mixed as investors are assessing Japan inflation and Singapore GDP data.

The Day Ahead

While the FBMKLCI was unable to sustain levels above 1,600, it managed to snap a 3-day losing streak. Meanwhile, Wall Street closed higher as investors continued to bet on “buy crypto and dollar” following Trump’s election victory. Over the weekend, Trump nominated Scott Bessent to lead the Treasury, tasking him with implementing the administration’s pledges to cut taxes and raise tariffs. This week, traders will shift their focus to key economic events, including: (i) the FOMC Meeting Minutes, (ii) US Core PCE data, (iii) US Q3 GDP, and (iv) China’s Manufacturing PMI. In the commodities market, Brent crude oil climbed toward USD75, while gold prices surged above USD2,700 amid rising geopolitical tensions. Conversely, CPO prices retreated below RM4,700.

Sector Focus: With rising gold and oil prices, we anticipate positive trading activity in the Gold and O&G sectors. Also, the stronger USD and the Trump administration’s proposed tariffs are expected to create opportunities in export-oriented sectors such as Technology and Gloves. The Construction, Property, and Building Materials sectors also remain supported by data center investments. Lastly, following SEALINK’s strong quarterly results, we are optimistic about Shipping and Aviation companies, alongside the Consumer sector, as we approach the festive season.

FBMKLCI Technical Outlook

The FBM KLCI index failed to close above the 1,600 level and is currently trading below all the MAs line. The technical readings were negative, with the MACD Histogram closing in the negative territory, while the RSI is trending below 50. The resistance is envisaged around 1,604-1,609, and the support is set at 1,569-1,574.

Company Briefs

Allianz Malaysia Bhd’s (ALLIANZ) net profit for the third quarter ended Sept 30 (3QFY2024) dipped 7.4% to RM183.2m from RM197.9m in the same quarter last year, as certain expenses jumped while it recorded a drop in dividend income and lower fair value gains from investments. Quarterly revenue grew 10.3% to RM1.44bn from RM1.31bn. No dividend was declared for the quarter. (The Edge)

Bumi Armada Bhd’s (ARMADA) net profit for 3QFY2024 rose 19% to RM211.33m from RM177.77m in the same quarter last year, as operating margins expanded with lower costs. Quarterly revenue edged up 5.2% to RM551.86m from RM524.8m. No dividend was declared for the quarter. (The Edge)

Bintulu Port Holdings Bhd’s (BIPORT) net profit for the 3QFY2024 dropped 13.68% to RM28.05m from RM32.49m in the same quarter last year, on a jump in operating costs due to an increase in expenditure incurred on service contracts, as well as for repair and maintenance. Revenue for the quarter rose 8.71% to RM202.77m compared with RM186.53m. A third interim dividend of three sen per share was declared for the quarter, payable on Dec 26. (The Edge)

D&O Green Technologies Bhd’s (D&O) net profit for 3QFY2024 was flat at RM18.25m compared to the same period last year, despite thinner gross margin. Quarterly revenue was also flat at RM273.25m, from RM271.95m. The group declared a first interim dividend of 0.3 sen per share, payable on Dec 30. (The Edge)

Sarawak Plantation Bhd’s (SWKPLT) net profit for 3QFY2024 rose 14.6% to RM31.07m from RM27.12m in the same quarter last year, thanks largely to a higher fair value gain on its biological assets. Quarterly revenue fell 13.7% to RM149.07m from RM172.65m due to lower sales of crude palm oil (CPO) and palm kernel (PK), despite higher average selling prices. A second interim dividend of 15 sen per share was declared, payable on Dec 27. (The Edge)

Favelle Favco Bhd (FAVCO) sank into the red for 3QFY2024 — the crane manufacturer's first quarterly loss since listing back in 2006 — with a net loss of RM7.58m versus a net profit of RM12.1m in the same quarter last year on foreign exchange loss. Quarterly revenue, however, rose 26.56% to RM189.88m from RM150.04m. No dividend was declared for the quarter. (The Edge)

CSC Steel Holdings Bhd’s (CSCSTEL) net profit for 3QFY2024 fell 21% to RM6.87m compared to RM8.35m in the same quarter last year, on competitive pressure from “unfair trade practices” and overcapacity among other challenges. Revenue for the quarter was only 0.2% higher at RM404.89m as compared to RM404.21m. No dividend was declared for the quarter. (The Edge)

BM Greentech Bhd’s (BMGREEN) net profit for the second quarter ended Sept 30, 2024 (2QFY2025) jumped 55% to a record high RM13m from RM8.38m in the same quarter last year, as revenue increased 15.8% to a record high RM137.1m from RM118.4m. No dividend was declared for the quarter. (The Edge)

SkyWorld Development Bhd (SKYWLD) has completed the due diligence for the proposed joint development of a property in Vietnam's Binh Duong province, its second venture into that country and is in the midst of negotiating a term sheet before finalising a shareholders’ agreement and sales and purchase agreement. It proposed in August the joint development of the remaining plots of the Guocoland Commercial Complex project in Thuan An City with SkyVenue Land Group Joint Stock Company, SkyBridge Company Ltd and the shareholders of SkyVenue (The Edge)

Lagenda Properties Bhd’s (LAGENDA) indirectly owned subsidiary Opti Vega Sdn Bhd has secured the right to develop a 139-acre land in Kota Tinggi, Johor, for RM99.62m, cash after exercising an option in a development rights agreement signed with Intact Corporate Approach Sdn Bhd earlier this year. The final purchase price may still vary. Opti Vega plans to develop a mixed development comprising residential and commercial units on the new plot, with an estimated gross development value (GDV) of RM889m. (The Edge)

Solarvest Holdings Bhd’s (SLVEST) wholly owned subsidiary Atlantic Blue Sdn Bhd has been awarded a RM142m engineering, procurement, construction and commissioning (EPCC) contract from SM01 Sdn Bhd, a special purpose vehicle (SPV) in which the group owns a 33% stake. The contract is for the construction of a solar photovoltaic energy generating facility in Gurun, Kedah, with a capacity of 29.99 megawatts of alternating current (MWac). Besides Solarvest, the other shareholders are Shizen Malaysia Sdn Bhd with a 49% stake and HSS Engineering Sdn Bhd with 18%. (The Edge)

South Malaysia Industries Bhd’s (SMI) largest shareholder Target 1 Sdn Bhd has called for an upcoming extraordinary general meeting scheduled for Jan 9, 2025, to appoint six new directors to the company’s board, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid. Target 1, which is controlled by Hong Seng Consolidated Bhd (HONGSENG) and Revenue Group Bhd’s (REVENUE) executive director Leong Seng Wui, owns a 30.67% stake in SMI. Besides Mior, the five other candidates were She Pei Sze, Lee Keng Fatt, Datuk Sok One Esen, Ho Pui Hold and Leong Weng Loong (The Edge).

Icon Offshore Bhd (ICON) has signed definitive agreements for a slew of previously announced acquisitions for 40 maritime assets worth over RM400m that will more than double its fleet. The deals are expected to close by the first quarter of 2025. (The Edge)

Top Glove Corp Bhd’s (TOPGLOV) wholly owned unit Top Quality Glove Sdn Bhd (TQG) has entered into a joint venture (JV) with US glove importer Tronex (Asia) Ltd, and Polywel International Trade Co Ltd for the production and distribution of highdensity polyethylene gloves. Under the agreement, TQG will hold a 60% stake in JV company TG Meditech Sdn Bhd, while Tronex and Polywel will each own 20%. Business operations are expected to commence by December 2024. (The Edge)

MNRB Holdings Bhd (MNRB) has appointed Datuk Rudy @ Rodzila Che Lamin as interim president and group chief executive officer (CEO) of the company, effective Friday. Rudy is replacing Zaharudin Daud, who stepped down following the expiry of his contract. (The Edge)

Chin Hin Group Property Bhd (CHGP) has established a RM500m perpetual notes programme. The proceeds raised from the perpetual notes shall be utilised for capital expenditures, refinancing of financing or borrowings, working capital, and other general corporate purposes. (The Edge)

Source: Mplus Research - 25 Nov 2024